My book review is on Nudge: The Final Edition by Richard Thaler and Cass Sunstein. Nudge was first published in 2009 and this book is a revised and updated version. Since it was first published the book has influenced countless individuals and groups to make better decisions through the process of nudging.
A nudge, as Thaler and Sunstein define it, 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.” (p. 8) The goal is to use what we know about behavioral science to improve and simplify people’s decision making. Takeaways include:
- Small changes can make a big difference. For example, I have learned from experimentation that people will select some salad greens if they are placed at the beginning of the buffet, rather than the end.
- The authors argue that choice architects (including software designers) should nudge users in a direction that will improve their lives.
- There can be a tendency to follow the crowd – so if you are trying to hire someone, using a group interview, consider secret ballots – rather than asking for people’s opinions in a group setting.
- Investment and temptation goods are candidates for nudging. By investment, the authors are referring to decisions with a long-term benefit – such as exercising or eating well. By temptation, the authors mean decisions that have a long-term cost – such as eating junk food.
- When you create nudges, make them easy. Expect that people will make mistakes and don’t be unforgiving. Offer feedback when possible. Allow people to easily opt-out.
- Sludge refers to any design that makes it harder for the user to do the right thing – for example – 25 page student loan form, rebate forms, or hard to read, automatic sign-ups.
- Inertia is a reality. How many people regularly reassess their insurance needs or paid technology subscriptions?
We have learned a lot about behavioral science over the last 25 years. It is time to start building some of that information into our policies and processes.
