1. Source: Adapted from MINDSPACE: Influencing behaviour through public policy,
Cabinet Office and Institute for Government
Citizens’ preferences often diverge from
economically “perfect rationality”
Known preference patterns (“cognitive shortcuts”) that
diverge from “perfect rationality”
Loss aversion
Placing much more importance on
avoiding losses than securing gains
Availability bias
Being overly concerned about unlikely, but
memorable or vivid, events
Anchoring
Being heavily influenced by your starting
point (e.g., sense of entitlement)
Short-termism
Preferring small, immediate rewards to
larger, more distant ones
Inertia
Putting off decisions involving complexity,
self-doubt or inconvenience