Nudges in action

The impact of behavioural economics is increasingly seen in many areas of public policy and commercial activity.

Below are some examples of behavioural ‘nudges’ in action:

Nudges in action

Behavioural nudges (thanks to Tutor2U)

Blood donation in Sweden provides a great example of how relatively simple changes can have big effects on behaviour: Donors get a text when blood is used

There are LOTS more examples like this on this brilliant blog.


Introducing Behavioural Economics

Welcome back Year 12!

Over the final weeks of the term we will be investigating a fascinating area of economics with applications to the choices people make in their daily lives.

In preparation, please read the following introduction. We’ll discuss some aspects of this in more detail soon.

Introduction to Behavioural Economics

The Value Paradox and Diminishing Marginal Utility

What examiners want: Evaluation

This document clarifies what examiners are looking for when assessing the quality of evaluation in candidates answers.

Well worth a read!

And here’s a guide to what you should know:




Price Caps: Cure or Curse?

Another method of price intervention available to governments to address market failure, price caps are often controversial. Recent examples include: mobile roaming charges in the EU, payday loans, pharmaceuticals and (often discussed) rent controls.

You need to be able to evaluate the arguments for and against this method and show that you understand the potential problems that they may face.

Take a look at these resources and articles:

Tutor2U summary:

Payday loans:

Housing rents:

Housing rents:

Assessing Price Caps



Too much to drink? Tackling the UK’s alcohol problem…


It’s not just taxes that affect prices. The UK has long debated imposing a minumum price for alcohol. The articles below give an excellent overview of the issues in this context.

Consider these questions:

  1. Explain the market failure here. What evidence can you use to support your view?
  2. Can you draw a diagram to represent the market failure?
  3. How would a minimum price work? Draw a diagram to illustrate the theory.
  4. What are the limitations of this method of price intervention?
  5. Are there alternatives or complementary strategies that could be used?

Some further reading:

Guide to Units: