University of Technology Sydney

23794 Choice Architecture

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2025 is available in the Archives.

UTS: Business: Economics
Credit points: 3 cp

Subject level:

Postgraduate

Result type: Grade and marks

Requisite(s): 23710 Behavioural Decision Making AND 23711 Behavioural Game Theory
There are course requisites for this subject. See access conditions.

Description

Choice Architecture uses behavioural insights to inform the design of decision contexts. This subject introduces the cognitive and philosophical foundations underlying choice architecture and “nudging”, reviews the major types of choice architectures, and reflects on the ethical implications of strategically manipulating the choice architecture.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:
1. Forecast how new institution choice architecture and policy will affect behaviour using behavioural insights
2. Creatively design choice architecture that will nudge individuals’ decision-making in a predictable way
3. Compare and contrast different choice architectures considering different institutional goals with respect to plausibility, effectiveness, and likely reception

Contribution to the development of graduate attributes

The subject will look at how the choice architecture of institutions should be designed to prompt individuals to adopt behaviour deemed desirable either by the institution designer or from the point of view of the decision maker themselves. This subject will equip students with conceptual tools to analyse problems and uncover opportunities to inform decision making?in a business or policy making context. The assessments will encourage consideration of different approaches to contrasting institutional and individual goals.

This subject contributes to the development of the following graduate attribute(s):

  • Intellectual rigour and innovative problem solving
  • Professional and technical competence

Teaching and learning strategies

This subject is taught through a blend of online resources, self-directed study, online review sessions, and seminars.

This subject elaborates on the knowledge acquired in behavioural economics. It will articulate theoretical discussions with examples of application in a wide range of domains including saving decisions, health decisions, and work decisions. Subject content will be presented to students in a variety of formats – including pre-recorded videos, lecture slides, notes, and articles – delivered both online and in-class. Students are expected to review materials on the learning management system and complete tasks on their own before attending a weekly review session with the lecturer. Materials will be provided to students on the learning management system but students are also expected to seek other information independently.

Seminars will offer face to face interaction to review the material and facilitate/encourage student engagement. Seminars are highly interactive where students will learn about choice architecture concepts and methods and apply these to solve problems and case studies, either individually or in small groups. Students will receive individual feedback from the lecturer.

Content (topics)

  • Preference construction
  • Paternalistic libertarianism
  • Choice architecture

Assessment

Assessment task 1: Case Presentation (Individual)

Objective(s):

This addresses subject learning objective(s):

1 and 2

Weight: 40%
Length:

PowerPoint slides that would support a 5-10 minute presentation.

Criteria:
  • Suitability of the recommendations to the case
  • Application of theoretical concepts to the case
  • Quality of presentation

Assessment task 2: Written Report (Individual)

Objective(s):

This addresses subject learning objective(s):

1, 2 and 3

Weight: 60%
Length:

1,200-words (not including supporting materials)

Criteria:
  • Suitability of the interventions to change the target behaviour
  • Application of theoretical concepts to the selected decision context
  • Quality of report

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

References

Thaler, R. H. & Sunstein, C. R. (2021). Nudge: The Final Edition. Penguin Books.

Johnson, E. (2021). The Elements of Choice: Why the Way We Decide Matters. Riverhead Books.