Economists, through understanding behavioral economics and irrational decision-making, can create significant social impacts through enabling healthier and more rational models for making choices.

Dan Ariely, notes that the awareness of our irrational tendencies in decision-making is a key component to building a more rational economic approach, both at the individual level and the societal level. Among his many examples, pay particular attention to the countries with high levels of participation in organ donor programs, and countries with low participation.

First, watch the video below Are we in Control of Our Decisions?

1) Identify a common consumer decision you would deem as irrational or inefficient, that negatively influences either the decision-maker or society at large. Defend your reasoning using what you've learned in this chapter.

2) Suggest some changes to how consumers are prompted to make this decision that may potentially diminish the inefficiency in this transaction. Take into account the TED talk linked above; consider how the presentation, description, or distribution of a good or service can substantially