Summary Nudge (Thaler & Sunstein)
Week 1: Introduction & Chapters 1,5,13 and 4
Introduction
1. Introduction example: The cafeteria.
Main question hereby is: how would you organize a school canteen? This
example underlines that small changes (for example, placing healthy food in
eyesight) influence behavior. When you are faced with the choice to change
something, you are a choice architect. How you represent a choice cannot be
neutral. People (choice architects) always choose something for a reason.
2. Libertarian Paternalism (e.g., the building blocks of Nudge)
“Libertarian” stands for: freedom of choice; people should be free to do and what
to like. “Paternalism” adds to that that it is legitimate for choice architects to try
to influence people’s behavior to try to make their lives easier, longer, and
healthier. The preferred way of being a paternalist is thus that we frame in a way
that is preferred by a nudgee.
3. A nudge is any aspect of the choice architecture that alters people’ behavior in a
predictable way without forbidding any options or significantly changing their
economic incentives. For example, you can place fruit at an eye level, but you
cannot ban junk food.
4. Humans Versus Econs (revising JDM)
People are expected to be rational, self-fulfilled and logical. However, people
don’t make decisions on these aspects. People are humans with emotions who
live in different situations. Therefore, people can be influenced.
5. People oppose paternalism (and nudge) based on:
False assumption #1: Almost all the people make choices that are in their best
interest
Misconception #2: Paternalism is always coercive
Misconception #3: It is possible to avoid influencing people
6. Good choice architecture (pro’s nudge)
a. Easy
b. Attractive
c. Social
d. Timely
Chapter 1
1. Biases and blunders
People are fallible and life is hard. Human judgment and decision making diverges
from the prediction of models based on optimizations. For example: table.
2. Rules of Thumb (revising JDM)
, a. Representativeness: bank teller or feminist?
b. Availability: 9/11 example: Muslims in metro
c. Anchoring: how old are you & how old is the Taj Mahal
d. Optimism: above average experiments
e. Overconfidence: divorce example
3. Gains and losses; status quo bias; framing
People don’t like losing things, in other words, they are loss averse. They would like
to keep things the way they are (status quo bias). When people are faced different
questions, their answers would depend on the way it is framed (risk averse & risk
taking). Framing alters choices.
4. System 1 & System 2
System 1 System 2
Fast Slow
Uncontrolled Controlled
Effortless Effortful
Unconscious Self-aware
Skilled Rule following
Associative Deductive
Chapter 5
1. Stimulus response compatibility: when you receive a stimulus, you expect it to be in
line with a desired action. For example, when you need a door to push, you expect a
handle.
This example illustrates that design choices need to align with basic human nature.
Life is full of products that suffer from such defects, for example: stove- and remote
control. The primary mantra from Thaler & Sunstein thus is: make it easy.
2. Defaults: people will take the path that requires the least action or least resistance.
See heuristics (chapter 1). Hence, people tend to choose the default option because
it leads to resemble the status quo, normal, preferred option. Therefore, the default
could be: self-serving and welfare enhancing. However, if people know their
preferences and know that they dislike the option that is embedded in the default,
they probably change it. For example, opt-in and opt-out strategies in donor
registers.
3. Design should
#1: expect error: “When you forget your attachment in mail, Google prompts you to
add the attachment”
#2: give feedback: “The iPhone battery is low”
#3: understands mapping: “It takes three apples to make apple juice”
#4: structure complex choices: “When studying for exams, people like a “do not
disturb mode on the iPhone (Niet Storen)”
#5: incentives are not salient: “You burned .. calories (on a treadmill)”
#6: know when to take a break: book chapters are short, but hard to let go.
Week 1: Introduction & Chapters 1,5,13 and 4
Introduction
1. Introduction example: The cafeteria.
Main question hereby is: how would you organize a school canteen? This
example underlines that small changes (for example, placing healthy food in
eyesight) influence behavior. When you are faced with the choice to change
something, you are a choice architect. How you represent a choice cannot be
neutral. People (choice architects) always choose something for a reason.
2. Libertarian Paternalism (e.g., the building blocks of Nudge)
“Libertarian” stands for: freedom of choice; people should be free to do and what
to like. “Paternalism” adds to that that it is legitimate for choice architects to try
to influence people’s behavior to try to make their lives easier, longer, and
healthier. The preferred way of being a paternalist is thus that we frame in a way
that is preferred by a nudgee.
3. A nudge is any aspect of the choice architecture that alters people’ behavior in a
predictable way without forbidding any options or significantly changing their
economic incentives. For example, you can place fruit at an eye level, but you
cannot ban junk food.
4. Humans Versus Econs (revising JDM)
People are expected to be rational, self-fulfilled and logical. However, people
don’t make decisions on these aspects. People are humans with emotions who
live in different situations. Therefore, people can be influenced.
5. People oppose paternalism (and nudge) based on:
False assumption #1: Almost all the people make choices that are in their best
interest
Misconception #2: Paternalism is always coercive
Misconception #3: It is possible to avoid influencing people
6. Good choice architecture (pro’s nudge)
a. Easy
b. Attractive
c. Social
d. Timely
Chapter 1
1. Biases and blunders
People are fallible and life is hard. Human judgment and decision making diverges
from the prediction of models based on optimizations. For example: table.
2. Rules of Thumb (revising JDM)
, a. Representativeness: bank teller or feminist?
b. Availability: 9/11 example: Muslims in metro
c. Anchoring: how old are you & how old is the Taj Mahal
d. Optimism: above average experiments
e. Overconfidence: divorce example
3. Gains and losses; status quo bias; framing
People don’t like losing things, in other words, they are loss averse. They would like
to keep things the way they are (status quo bias). When people are faced different
questions, their answers would depend on the way it is framed (risk averse & risk
taking). Framing alters choices.
4. System 1 & System 2
System 1 System 2
Fast Slow
Uncontrolled Controlled
Effortless Effortful
Unconscious Self-aware
Skilled Rule following
Associative Deductive
Chapter 5
1. Stimulus response compatibility: when you receive a stimulus, you expect it to be in
line with a desired action. For example, when you need a door to push, you expect a
handle.
This example illustrates that design choices need to align with basic human nature.
Life is full of products that suffer from such defects, for example: stove- and remote
control. The primary mantra from Thaler & Sunstein thus is: make it easy.
2. Defaults: people will take the path that requires the least action or least resistance.
See heuristics (chapter 1). Hence, people tend to choose the default option because
it leads to resemble the status quo, normal, preferred option. Therefore, the default
could be: self-serving and welfare enhancing. However, if people know their
preferences and know that they dislike the option that is embedded in the default,
they probably change it. For example, opt-in and opt-out strategies in donor
registers.
3. Design should
#1: expect error: “When you forget your attachment in mail, Google prompts you to
add the attachment”
#2: give feedback: “The iPhone battery is low”
#3: understands mapping: “It takes three apples to make apple juice”
#4: structure complex choices: “When studying for exams, people like a “do not
disturb mode on the iPhone (Niet Storen)”
#5: incentives are not salient: “You burned .. calories (on a treadmill)”
#6: know when to take a break: book chapters are short, but hard to let go.
