Endowment Effect - The Economics of Design
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Prototyping in Design Thinking: How to Avoid Six Common Pitfalls
The Design Thinking process cannot be done without prototyping and testing. However, for companies or teams unfamiliar with the Design Thinking method, there might be some common mindsets about prototyping that potentially undermine its effectiveness in helping you craft the optimal design solutions. Let’s look at six of the most common misconce...
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- 3 weeks ago
Loss Aversion Theory - The Economics of Design
If people were rational then the feelings invoked by losing something or gaining something (of equal value) ought to be the same. We should feel as pleased that our friend has just given us $100 for our birthdays as we feel bad that we have lost $100 when we forgot to take it from an ATM machine.In reality this isn’t the case. Psychologists and ...
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Loss Aversion – Really, What’s the Worst that Can Happen?
There’s a cognitive bias that makes us sadder to lose something than it makes us happy to gain it. This causes us to be afraid of loss – even when that fear is illogical. It prevents us from taking small risks to make big gains, for example. Overcoming loss aversion can help you build better products and manage your life in a more objective mann...
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- 1 year ago
Introducing Game Mechanics for Gamification
Every form of design features special techniques which can take a design from “OK” to “amazing”. Gamification is no exception. Game mechanics are the vital components of gamification which transform this form of design from “adding features” to “adding fun”. Janaki Kumar and Mario Herger, in their book, “Gamification at Work: Designing Engaging ...
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- 8 months ago
Prospect Theory - The Economics of Design
Economists once assumed that every actor in an economic system would be rational. That people would calculate the value of what they had and what they could have in the future accurately and that they would make their decisions based on that calculation. Unfortunately, in practice this was rarely the case – in fact traditional economic models an...
- 341 shares
- 1 year ago
Fear of Loss Provides Motivation to Buy
We often talk about creating positive emotions through design; we look to make clients happy and users comfortable, etc. but rarely do we talk about making them afraid. Of course, unless you’re selling horror movies, you probably won’t want to terrify your clients; however, there is a good argument for tapping into basic fear in your designs in ...
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