Choice architecture

Choice architecture refers to the physical and symbolic environment that faces decision-makers at the point where they make a decision. The decision-making environment can have a significant impact on choices made. Choice architecture can be designed to contain a default option that is applied if the individual takes no decision. Defaults can be set up to improve welfare – such as having low-fat milk as the default option when buying a coffee. Behavioural economists are interested in how choice architecture can be manipulated by policy makers to improve economic welfare.