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Nudge theory
Nudge theory is a concept in behavioral economics, decision making, behavioral policy, social psychology, consumer behavior, and related behavioral sciences that proposes adaptive designs of the decision environment (choice architecture) as ways to influence the behavior and decision-making of groups or individuals. Nudging contrasts with other ways to achieve compliance, such as education, legislation or enforcement.
The nudge concept was popularized in the 2008 book Nudge: Improving Decisions About Health, Wealth, and Happiness, by behavioral economist Richard Thaler and legal scholar Cass Sunstein, two American scholars at the University of Chicago. It has influenced British and American politicians. Several nudge units exist around the world at the national level (UK, Germany, Japan, and others) as well as at the international level (e.g. World Bank, UN, and the European Commission). There is ongoing debate over whether "nudge theory" is a recent novel development in behavioral economics or merely a new term for one of many methods for influencing behavior.
The effectiveness of nudges is controversial. Maier et al. wrote that, after correcting the publication bias found by Mertens et al. (2021), there is no evidence that nudging has any effect.
"Nudging" is an umbrella term referring to many techniques. Skeptics believe some nudges (e.g. default effect) can be highly effective while others have little to no effect. They call for studies that focus on moderators and shift away from investigating average effects. A meta-analysis of all unpublished nudging studies carried by nudge units with over 23 million individuals in the United Kingdom and United States found effectiveness in some nudges, but with substantially weaker effects than published studies indicate. Moreover, some researchers criticized the "one-nudge-for-all" approach and advocated for more studies, with a more robust and consistent evidence base. Implementations of personalized nudging (based on individual differences) appear to be more effective.
The first formulation of the term nudge and associated principles was developed in cybernetics by James Wilk before 1995 and described by Brunel University academic D. J. Stewart as "the art of the nudge" (sometimes referred to as micronudges). It also drew on methodological influences from clinical psychotherapy tracing back to Gregory Bateson, including contributions from Milton Erickson, Watzlawick, Weakland and Fisch, and Bill O'Hanlon. In this variant, a nudge is a microtargeted design geared toward a specific group of people, irrespective of the scale of intended intervention.
In 2008, Richard Thaler and Cass Sunstein's book Nudge: Improving Decisions About Health, Wealth, and Happiness brought nudge theory to prominence. The authors refer to the influencing of behaviour without coercion as libertarian paternalism and the influencers as choice architects.
Thaler and Sunstein defined their concept as the following:
A nudge, as we will use the term, is any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives. To count as a mere nudge, the intervention must be easy and cheap to avoid. Nudges are not mandates. Putting fruit at eye level counts as a nudge. Banning junk food does not.
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Nudge theory
Nudge theory is a concept in behavioral economics, decision making, behavioral policy, social psychology, consumer behavior, and related behavioral sciences that proposes adaptive designs of the decision environment (choice architecture) as ways to influence the behavior and decision-making of groups or individuals. Nudging contrasts with other ways to achieve compliance, such as education, legislation or enforcement.
The nudge concept was popularized in the 2008 book Nudge: Improving Decisions About Health, Wealth, and Happiness, by behavioral economist Richard Thaler and legal scholar Cass Sunstein, two American scholars at the University of Chicago. It has influenced British and American politicians. Several nudge units exist around the world at the national level (UK, Germany, Japan, and others) as well as at the international level (e.g. World Bank, UN, and the European Commission). There is ongoing debate over whether "nudge theory" is a recent novel development in behavioral economics or merely a new term for one of many methods for influencing behavior.
The effectiveness of nudges is controversial. Maier et al. wrote that, after correcting the publication bias found by Mertens et al. (2021), there is no evidence that nudging has any effect.
"Nudging" is an umbrella term referring to many techniques. Skeptics believe some nudges (e.g. default effect) can be highly effective while others have little to no effect. They call for studies that focus on moderators and shift away from investigating average effects. A meta-analysis of all unpublished nudging studies carried by nudge units with over 23 million individuals in the United Kingdom and United States found effectiveness in some nudges, but with substantially weaker effects than published studies indicate. Moreover, some researchers criticized the "one-nudge-for-all" approach and advocated for more studies, with a more robust and consistent evidence base. Implementations of personalized nudging (based on individual differences) appear to be more effective.
The first formulation of the term nudge and associated principles was developed in cybernetics by James Wilk before 1995 and described by Brunel University academic D. J. Stewart as "the art of the nudge" (sometimes referred to as micronudges). It also drew on methodological influences from clinical psychotherapy tracing back to Gregory Bateson, including contributions from Milton Erickson, Watzlawick, Weakland and Fisch, and Bill O'Hanlon. In this variant, a nudge is a microtargeted design geared toward a specific group of people, irrespective of the scale of intended intervention.
In 2008, Richard Thaler and Cass Sunstein's book Nudge: Improving Decisions About Health, Wealth, and Happiness brought nudge theory to prominence. The authors refer to the influencing of behaviour without coercion as libertarian paternalism and the influencers as choice architects.
Thaler and Sunstein defined their concept as the following:
A nudge, as we will use the term, is any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives. To count as a mere nudge, the intervention must be easy and cheap to avoid. Nudges are not mandates. Putting fruit at eye level counts as a nudge. Banning junk food does not.