Invisible Economic Nudges in Consumer Behavior
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Learn how economic nudges work to influence your spending. Understand libertarian paternalism and how price elasticity controls your grocery store habits.
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Video Transcript
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You think you choose what you buy, but your brain is actually running a constant cost-benefit
calculation on autopilot. It is called Libertarian Paternalism, and it proves that incentives control
your behavior more than your principles. Look at the grocery store. You will pay almost
anything for organic milk because you are used to the price, but the second organic
meat gets too expensive, you drop it for the cheap stuff immediately. That is called price
elasticity. Occasional buyers panic at price hikes, while loyalists stay blind.
Basically, your wallet is being steered by invisible economic nudges every single day.
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