LIT3 - Sunstein, C. R. (2014). Nudging: A Very Short Guide. Journal of Consumer Policy, 37, 583-588

Question 2

What are Nudges?

Answer 2

Nudges are liberty-preserving approaches that steer people in particular directions, but that also allow them to go their own way.

They generally cost little and have the potential to promote economic and other
goals (including public health).

Question 3

What is the goal of nudges?

Answer 3

It is important to see that
the goal of many nudges is to make life simpler, safer, or easier for people to navigate.

Question 4

What is the advantage of nudges?

Answer 4

A principal advantage of nudges, as opposed to mandates and bans, is that they avoid coercion.
Even so, they should never take the form of manipulation or trickery. The
public should be able to review and scrutinize nudges no less than government 1actions of any other kind.

Question 5

What are the ten important nudges?

Answer 5

1. Default rules
   a. automatic enrollment in programs, including education, health, savings.
2. Simplification
   a. In many nations, the benefits of important programs (involving education,
   health, finance, poverty, and employment) are greatly reduced because of
   undue complexity. So simplification of forms and regulations should be a high
   priority.
3. Use of social norms
   a. Emphasizing what most people do, e.g., “most people plan to vote” or “most
   people pay their taxes on time” or “nine out of ten hotel guests reuse their
   towels”.
4. Increase in ease and convenience
   a. F.e. making low-cost options or healthy foods visible
5. Disclosure
   a. Disclosure can operate as a check on private or public inattention, negligence,
   incompetence, wrongdoing, and corruption. F.e. the economic or environmental
   costs associated with energy use or the full cost of certain credit cards.
6. Warnings, graphic or otherwice
   a. the pictures on cigarettes
7. Precommitment strategies
   a. If people precommit to engaging in a certain action, they are more likely to act
   in accordance with their goals.
8. Reminders
   a. For reminders, timing greatly matters; making sure that people can act
   immediately on the information is critical. F.e. by email or text message, as for overdue bills and coming obligations or appointments
9. Eliciting implementation intentions
   a. People are more likely to engage in activity if someone elicits their
   implementation intentions. F.e. “do you plan to vote?”
10. Informing people of the nature and consequences of their past choices
    a. If people obtain information, their behavior can shift.

Question 6

What are the two approaches to nudging?

Answer 6

1. Building on what is already known
2. Create a new institution such as behavioural insights unit
3. Building on what is already known.
   This approach is the simplest because it does not require new offices or
   significant additional funding but only attention to the relevant issues and a
   focus on the right appointments.
4. Create a new institution, such as a behavioral insights unit.
   Whatever its precise form, the advantage of such an approach is that it would
   involve a dedicated and specialized team, highly informed and specifically
   devoted to the relevant work, and with expertise in the design of experiments.