Understanding behavioral economics and irrational decision-making

Economists, through understanding behavioral economics and irrational decision-making,
can create significant social impacts through enabling healthier and more rational models
for making choices.
Dan Ariely, notes that the awareness of our irrational tendencies in decision-making is a key
component to building a more rational economic approach, both at the individual level and
the societal level. Among his many examples, pay particular attention to the countries with
high levels of participation in organ donor programs, and countries with low participation.
First, watch the video below Are we in Control of Our Decisions? Then write a 2 page
response to the prompts below. Your paper should be in APA format, be sure to
include title and reference pages.
1) Identify a common consumer decision you would deem as irrational or inefficient, that
negatively influences either the decision-maker or society at large. Defend your reasoning
using what you've learned in this chapter.
2) Suggest some changes to how consumers are prompted to make this decision that may
potentially diminish the inefficiency in this transaction. Take into account the TED talk linked
above; consider how the presentation, description, or distribution of a good or service can
substantially impact a consumer decision.