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Should Governments Invest More in Nudging?

ABSTRACT: Governments are increasingly adopting behavioral science techniques for changing individual behavior in pursuit of policy objectives. The types of "nudge" interventions that governments are now adopting alter people's decisions without coercion or significant changes to economic incentives. We calculated ratios of impact to cost for nudge interventions and for traditional policy tools, such as tax incentives and other financial inducements, and we found that nudge interventions often compare favorably with traditional interventions. We conclude that nudging is a valuable approach that should be used more often in conjunction with traditional policies, but more calculations are needed to determine the relative effectiveness of nudging.

SUBMITTER: Benartzi S

PROVIDER: S-EPMC5549818 | biostudies-other | 2017 Aug

REPOSITORIES: biostudies-other

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Should Governments Invest More in Nudging?

Benartzi Shlomo S Beshears John J Milkman Katherine L KL Sunstein Cass R CR Thaler Richard H RH Shankar Maya M Tucker-Ray Will W Congdon William J WJ Galing Steven S

Psychological science 20170605 8

Governments are increasingly adopting behavioral science techniques for changing individual behavior in pursuit of policy objectives. The types of "nudge" interventions that governments are now adopting alter people's decisions without coercion or significant changes to economic incentives. We calculated ratios of impact to cost for nudge interventions and for traditional policy tools, such as tax incentives and other financial inducements, and we found that nudge interventions often compare fav ...[more]

PMID: 28581899

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