Should Governments Invest More in Nudging?. (August 2017)

• Record Type: Journal Article
• Authors: Benartzi, Shlomo; Beshears, John; Milkman, Katherine L.; Sunstein, Cass R.; Thaler, Richard H.; Shankar, Maya; Tucker-Ray, Will; Congdon, William J.; Galing, Steven
• Is Part Of: Psychological science. Volume 28:Number 8(2017)
• Page Start: 1041
• Page End: 1055
• Publication Date: 2017-08
• Subjects: nudge -- nudge unit -- choice architecture -- behavioral science -- behavioral economics -- savings -- pension plan -- education -- college enrollment -- energy -- electricity usage -- preventive health -- influenza vaccination -- flu shot -- open materials; Psychology -- Periodicals; 150.5
• DOI: 10.1177/0956797617702501
• Languages: English
• ISSNs: 0956-7976

Abstract

Governments are increasingly adopting behavioral science techniques for changing individual behavior in pursuit of policy objectives. The types of "nudge" interventions that governments are now adopting alter people's decisions without coercion or significant changes to economic incentives. We calculated ratios of impact to cost for nudge interventions and for traditional policy tools, such as tax incentives and other financial inducements, and we found that nudge interventions often compare favorably with traditional interventions. We conclude that nudging is a valuable approach that should be used more often in conjunction with traditional policies, but more calculations are needed to determine the relative effectiveness of nudging.