Nudge
A nudge is any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options.
Why read it
Where you place the fruit in a cafeteria changes what children eat, without banning a single cookie. Thaler and Sunstein show that the design of everyday choices quietly steers our decisions, and argue we should design them to help rather than harm.
Nudge shows that because people are predictably irrational, the way choices are structured, the choice architecture, powerfully shapes what we decide. Richard Thaler and Cass Sunstein argue for libertarian paternalism: nudging people toward better outcomes while preserving their freedom to choose. It is a practical guide to designing decisions in health, wealth, and happiness.
Nudge was published in 2008 by economist Richard Thaler and legal scholar Cass Sunstein. Its ideas influenced governments worldwide, inspiring behavioral insights teams, including the UK's so-called Nudge Unit. Thaler was awarded the Nobel Prize in Economic Sciences in 2017 for his work in behavioral economics.
- 01
Choice architecture
Every environment presents choices in some way, and that design inevitably influences decisions.
- 02
Default power
Setting smart defaults, like automatic pension enrollment, dramatically improves outcomes without force.
- 03
Humans, not Econs
Real people rely on mental shortcuts and biases rather than the perfect rationality economics assumes.
- 04
Libertarian paternalism
You can steer people toward better choices while still leaving them completely free to opt out.
The cafeteria example, where rearranging food placement changes what students eat by up to twenty-five percent without removing any options.
The Save More Tomorrow program, which nudges employees to commit future raises to retirement savings, sharply raising savings rates.
