Tag Archives: Richard Thaler

Nudge: Improving Decisions about Wealth, Health and Happiness by Richard Thaler and Cass Sunstein

  1. Thaler and Sunstein discuss at length how choices are designed and how we can make better decisions – personal finance, health, relationships, the environment, retirement benefits, organ donations, etc.
Key Takeaways
  1. Nudge – anything which pushes people slightly in one direction or to make some decision through context and design. Any choice architecture which alters people’s behavior in a predictable way without restricting any options. Must be slight and easy to implement. Choice architecture and nudges are everywhere
  2. Choice architect – in charge of setting the context in which people make decisions
  3. Small changes and context can lead to big changes in people’s actions and behavior
  4. Libertarian paternalism – impose as low of a cost as possible while nudging people in positive ways. Not an oxymoron as this nudging can be done in such a way that it helps people make better choices without eliminating options
What I got out of it
  1. Designing choices in order to nudge people in positive directions can have amazing outcomes. Often it is not even difficult to implement, it simply requires awareness of our fallibility to these small changes in content and context. A fantastic read

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