Nudge Theory in Action

"An illuminating, exceptionally valuable collection with diverse perspectives and - maybe best of all - plenty of evidence. Indispensable reading for those interested in the real world of behavioral science." (Cass R. Sunstein, Harvard University, USA; coauthor of "Nudge") "With examples ranging from energy efficiency standards to consumer finance, this highly accessible volume provides an engaging tour through ways in which market mechanisms can play a constructive role in fostering sound decisions. Since identical consumer choices are seldom ideal for everyone, market operations that permit people to learn from their mistakes may be more welfare-enhancing than trying to prevent such mistakes through policies designed to make consumer product choices more rational." (W. Kip Viscusi, University Distinguished Professor of Law, Economics, and Management, Vanderbilt University, USA) "Finally, a serious look at how government nudges would work in the real world. A valuable guide for anyone interested in how behavioral economics interacts with public choice economics and market forces." (Jayson Lusk, Regents Professor and Willard Sparks Endowed Chair, Oklahoma State University, USA; author of "Unnaturally Delicious" and "The Food Police")

This collection challenges the popular but abstract concept of nudging, demonstrating the real-world application of behavioral economics in policy-making and technology.This collection challenges the popular but abstract concept of nudging, demonstrating the real-world application of behavioral economics in policy-making and technology. Groundbreaking and practical, it considers the existing political incentives and regulatory institutions that shape the environment in which behavioral policy-making occurs, as well as alternatives to government nudges already provided by the market. The contributions discuss the use of regulations and technology to help consumers overcome their behavioral biases and make better choices, considering the ethical questions of government and market nudges and the uncertainty inherent in designing effective nudges. Four case studies - on weight loss, energy efficiency, consumer finance, and health care - put the discussion of the efficiency of nudges into concrete, recognizable terms. A must-read for researchers studying the public policy applications of behavioral economics, this book will also appeal to practicing lawmakers and regulators.