Please addresses the following questions based on your understanding of the facts in the workshop, behavioral economic theory and how you believe the theories in applied behavioral economics could be used in conjunction with an ERM risk framework. There are no right or wrong answers; however, your answers should accurately reflect the facts in the workshop and explain how behavioral economic theory can be applied to respond in similar circumstances.
The decision to overtly deceive consumers and regulatory agencies is a clear ethical violation, and is never a defensible business decision. Nevertheless, Volkswagen’s leadership chose to do exactly this. What biases and decision architectures might lead to such a choice?