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The 2008 book “Nudge: Improving Decisions About Health, Wealth, and Happiness” was co-written by legal scholar Cass R. Sunstein and economist Richard H. Thaler, who was awarded the 2008 Nobel Prize in Economics. The book presents the idea of “nudging,” a tactic that entails creating options that gently steer readers toward better alternatives without limiting their freedom of choice.
Choice Architecture:
- The idea of “choice architecture,” which describes how choices are made and presented to people, is covered by Thaler and Sunstein. By changing the surroundings or how options are presented, nudges aim to influence decisions without requiring a certain course of action.
Nudges vs. Mandates:
- The writers make a distinction between mandates and nudges. While mandates impose predetermined options or limitations, nudges maintain freedom of choice by influencing decisions without using coercion.
Defaults and Opt-Outs:
- The book delves into the power of defaults, highlighting how choices can be greatly influenced by the way default settings frame options. Opt-out policies, in which participants are enrolled automatically but have the option to opt out, are talked about as successful nudges.
Libertarian Paternalism:
- In their introduction of the idea of “libertarian paternalism,” Thaler and Sunstein contend that behavior can be influenced in a way that advances the welfare of the individual and the community without compromising personal liberties.
The Power of Incentives:
- The writers explore how incentives affect how people make decisions. They talk about how changing incentives — even slightly — can result in…
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