Learning objectives
State the assumptions of rational consumer choice (consumer rationality, utility maximisation, perfect information) and explain why economists question them
Explain cognitive biases such as rules of thumb, anchoring, framing and availability, and the ideas of bounded rationality, bounded self-control, bounded selfishness and imperfect information
Evaluate choice architecture (default, restricted and mandated choices) and nudge theory as tools for influencing behaviour
Compare profit maximisation with alternative business objectives: growth, market share, satisficing and corporate social responsibility
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