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In this short video behavioural economist, Dan Aerily talks about how our cognitive illusions will trick us into believing something that is otherwise deemed irrational by the homo economicus. It raises and probes into some very interesting questions that defy the neoclassical rational behaviour. Why do two otherwise similar countries behave differently in terms of organ donation? Is it the culture or norm, or something else? In a set of two alternative choices, does the addition of a third inferior choice "nudge" us towards a specific alternative?
It is a very interesting and relevant material that points us the complexities of the human brain and the illusions it creates. These illusions may turn out to be crucial in determining our decisions based on choices and thus provides the very base of behavioural economics.