The Rest Is Money 227. How Economics Can Stop Us Making Stupid Choices
18 snips
Nov 24, 2025 
Join Richard Thaler, a Nobel Prize-winning economist and co-author of 'Nudge', as he dives into the fascinating world of behavioral economics. He reveals how governments can nudge us towards better choices, discussing the role of defaults in enhancing beneficial behaviors. Thaler warns about the dark side of defaults, especially in subscriptions, and shares insights on using AI tools to empower consumers. He also explores overbidding in auctions and how corporate incentives can lead to costly decisions. A thought-provoking conversation on making wiser choices!
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Status Quo Bias Powers Default Policies
- People have a strong status quo bias and are very good at doing nothing.
- Designing defaults like auto-enrolment exploits that inertia to increase beneficial behaviours.
Require Easy Exit For Subscriptions
- If you let companies make it easy to sign up, require equal ease to cancel.
- Implement simple one-click unsubscribe rules to protect consumers from recurring traps.
Machine-Readable Data Unlocks Consumer Power
- Transparency and machine-readable data empower consumers to compare and check contracts.
- Allowing machine-readable access enables tools to audit deals and spot harmful terms.
