Misbehaving: The Making of Behavioral Economics

by Richard H. Thaler

Cialdini’s basic theme that most people pay on time. Some examples: • The great majority of people in the U.K. pay their taxes on time. • The great majority of people in your local area pay their taxes on time. • You are currently in the very small minority of people who have not paid their taxes on time. If you are wondering, the phrase “the great majority” was used in place of the more precise “90% of all taxpayers” because some of the letters were customized for specific localities, and BIT was unable to confirm that the 90% number was true for every locality used. There is an important general point here. Ethical nudges must be both transparent and true. That is a rule the BIT has followed scrupulously.‡ All the manipulations helped, but the most effective message combined two sentiments: most people pay and you are one of the few that hasn’t.