How can we better account for the irrationality of human behavior in our policy structure? 

Decisions people make are mostly based on the situation they find themselves in. The circumstances of a decision often make our choices rational or irrational, because in some situations one has more options to choose from, in others, the opposite. In the TedTalk (https://www.ted.com/talks/dan_ariely_are_we_in_control_of_our_own_decisions/transcript), Dan Ariely presents a chart that describes how countries in Europe responded to a survey that showed the percentage of people who indicated they would be interested in giving their organs to donations.

The outcome of the survey was primarily based on the type of questionnaire (form at the DMV) being presented to them to tick the boxes which impacted the outcome of the survey. What if other incentive packages such as cash prizes or even tax exemptions were introduced as part of the questionnaire? Would that have influenced the outcome of the survey?

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Addressing the irrationality of human behavior in policy structures is a complex and important task It requires an understanding of behavioral economics psychology and human decisionmaking processes D... View the full answer