Jamie's Reviews > Nudge: Improving Decisions About Health, Wealth, and Happiness
Nudge: Improving Decisions About Health, Wealth, and Happiness
by Richard H. Thaler, Cass R. Sunstein
by Richard H. Thaler, Cass R. Sunstein
The full title here is Nudge: Improving Decisions about Health, Wealth, and Happiness, and between them the two authors, Richard Thaler and Cass Sunstein, can claim a substantial amount of expertise in psychology, economics, law, and public policy. The stated goal of the book is to take lessons from these four areas and squish them into a concept that the authors dub "libertarian paternalism." The idea is that as libertarians the two believe in free information and free choice in all things public and private, but as students of behavioral economics and psychology they know that most people, most of the time, simply make bad decisions on account of our human nature. This is a book about how to fix that. Or at least improve things relative to the status quo.
Specifically, Thaler and Sunstein propose a series of "nudges" that spring from the way that choices are presented, framed, and informed. Early on they give the example of Carolyn, a fictional director of food services for a public school. Carlyn wants the students at her school to eat healthy, but she has limited control over menus so she can't just ban unhealthy food --nor does she necessarily think she should. But what she can do is nudge children into making healthier choices by changing how food is presented and what information kids are given about their choices. Putting carrots at eye level while chips are relegated to the bottom shelf, for example, would translate to more carrots being eaten. Or including milk with the value meal by default, even if kids can request to substitute soda for free. It's not a matter of forcing (read: legislating) students to eat their damn carrots, but rather creating what the authors call a helpful choice architecture that encourages the students to make better decisions on their own by side stepping (or even capitalizing on) well known foibles in human decision-making.
After a few introductory chapters to explore these foibles (think anchoring, framing, availability heuristic, loss aversion, status quo bias, etc.), Thaler and Sunstein run with the idea by showing how to create choice architectures that favor their libertarian paternalism approach to public policy and personal choices in everyday life. Specifically, they show how to nudge people into saving more money for retirement, investing money better, choosing a better prescription drug plan, increasing organ donation, protecting the environment, choosing the right school for their kids, and more. I have to admit that I enjoyed the early chapters on psychology and behavioral economics more than the later chapters, which became more nakedly political, but there are a lot of really solid ideas in here, even if they are of varying levels of practicality.
The authors also have a great style. They keep things friendly, funny, and engaging, with the occasional vignette, figure, or photograph to illustrate their points as needed. I was rarely bored, even when talk turned to traditionally tiresome subjects like 401(k) savings, prescription drug plans, and fuel economy. And the book is full of thoughtful insights on how human psychology plays into everyday decisions and, more importantly, how to avoid those kinks in the human brain that often lead to poor decisions about things that really matter.
Specifically, Thaler and Sunstein propose a series of "nudges" that spring from the way that choices are presented, framed, and informed. Early on they give the example of Carolyn, a fictional director of food services for a public school. Carlyn wants the students at her school to eat healthy, but she has limited control over menus so she can't just ban unhealthy food --nor does she necessarily think she should. But what she can do is nudge children into making healthier choices by changing how food is presented and what information kids are given about their choices. Putting carrots at eye level while chips are relegated to the bottom shelf, for example, would translate to more carrots being eaten. Or including milk with the value meal by default, even if kids can request to substitute soda for free. It's not a matter of forcing (read: legislating) students to eat their damn carrots, but rather creating what the authors call a helpful choice architecture that encourages the students to make better decisions on their own by side stepping (or even capitalizing on) well known foibles in human decision-making.
After a few introductory chapters to explore these foibles (think anchoring, framing, availability heuristic, loss aversion, status quo bias, etc.), Thaler and Sunstein run with the idea by showing how to create choice architectures that favor their libertarian paternalism approach to public policy and personal choices in everyday life. Specifically, they show how to nudge people into saving more money for retirement, investing money better, choosing a better prescription drug plan, increasing organ donation, protecting the environment, choosing the right school for their kids, and more. I have to admit that I enjoyed the early chapters on psychology and behavioral economics more than the later chapters, which became more nakedly political, but there are a lot of really solid ideas in here, even if they are of varying levels of practicality.
The authors also have a great style. They keep things friendly, funny, and engaging, with the occasional vignette, figure, or photograph to illustrate their points as needed. I was rarely bored, even when talk turned to traditionally tiresome subjects like 401(k) savings, prescription drug plans, and fuel economy. And the book is full of thoughtful insights on how human psychology plays into everyday decisions and, more importantly, how to avoid those kinks in the human brain that often lead to poor decisions about things that really matter.
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