Nudge Theory

Throughout the last decade, nudging has been hard to miss in the worlds of behavioral economics and public policy. This new “hot topic” is intended to help individuals make better choices that they want to make in a predictable way while being sure to preserve their freedom of choice. Nudges (or good ones at least) are usually inexpensive or free to implement and take very little time, making them very enticing for organizational and public policy leaders looking to promote effective change! These could include something like putting healthier food choices at eye level, making public trash bins brightly colored so they’re easier to spot, or changing the default energy-use settings on appliances. 

Nudges usually appeal to our System 1 brain, the mode of thinking that provides us with automatic, unconscious, and emotional responses to stimuli. System 1 often leads us to outcomes that may not be favorable to ourselves, others, or even our planet in the long run—such as impulse shopping, alcohol addiction, or choosing the first thing on the menu, even when it’s not a particularly healthy or ethical choice. Understanding the power we have to efficiently and effectively ‘nudge’ our System 1 brains, which make thousands of micro-decisions for us on a daily basis, into healthier, safer, and more sustainable choices has been a booming field of research in recent years. 

Some examples of common nudges include: 

• Default Options: Automatically enrolling individuals in beneficial programs (e.g., retirement plans) with the option to opt out, increasing participation rates.
• Social Norms: Informing people about the behaviors of others, such as telling them that most of their peers recycle, to encourage similar behavior.
• Simplification: Reducing the complexity of forms or processes to make it easier for people to take action, such as simplifying tax filing processes.
• Framing: Presenting information in a way that highlights the positive aspects, such as stating “90% fat-free” instead of “10% fat.”
• Reminders: Sending timely prompts or alerts to encourage people to take action, like a text message reminding someone to exercise.
• Feedback: Providing individuals with immediate feedback on their actions, such as showing energy usage compared to neighbors to encourage conservation.
• Anchoring: Using initial pieces of information as a reference point to influence decisions, like suggesting a starting amount for donations.
• Commitment Devices: Encouraging people to make commitments to future actions, such as pledging to quit smoking by a certain date.
• Salience: Making key information stand out to capture attention, such as highlighting deadlines or important details in bold or bright colors.
• Priming: Exposing people to certain stimuli to influence their subsequent behavior, like playing slow music in a store to encourage more browsing and buying.