Nudge: The Final Edition

by Richard H. Thaler

Loss aversion helps produce inertia, meaning a strong desire to stick with your current holdings. If you are reluctant to give up what you have because you do not want to incur losses, then you will turn down trades you might have otherwise made.

If choice architects want to shift behavior and to do so with a nudge, they might be able to achieve this by simply informing people about what others are thinking and doing. Sometimes the thoughts and practices of others are surprising, and hence people are much affected by learning what they are.