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LESSON 2 · Your Irrational Brain: Behavioral Economics

The Architecture of Choice

Every choice you make happens inside a designed environment. The order of items on a menu, the default settings on your phone, the layout of a grocery store — each one quietly shapes what you decide.

Nudge theory, developed by Richard Thaler and Cass Sunstein, argues we should design these choice environments deliberately to guide people toward better outcomes while preserving their freedom to choose otherwise. Small design changes produce massive behavioral shifts.