Behavioural economics

Do people predictable and rational decisions? Dan Ariely, Professor of Behavioural Economics at MIT, makes several important points in this video. He’s showing some interesting studies how peoples decisions are affected by the options that are presented to him, and thereby predictably altering people’s behaviour, making them do predictable but irrational decisions. Based on evolution, the human brain have evolved to be fine-tuned to the environment around us, and much of the input we receive are processed sub-consciously, and the decision is mostly perceived as rational, but when the input is modified in a certain way, it is clear that the behaviour of the brain affects the decision, and the person makes sub-consciously a predictable, but irrational decisions.

You might ask, how this relates to online security. Understanding how your customers behave increases your awareness, which ultimately will serve your customers. This will also help raise customers awareness, and to increase users consent. The future of online activity is to empower the user, and for that you need to give the customer a tool that enables him to make rational and non-biased decisions.

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~ by petergullberg on May 25, 2009.

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