Most of us may be unable to describe what nudges are, and yet, all of us are likely to encounter them every day. More specifically, they probably play a significant role in the way we make decisions, whether it is about what to buy at the supermarket, how many steps we should walk, or what kind of insurance we should subscribe to. The funny thing about this is, we probably don’t even realize it. This article will try to answer the following questions: What are nudges? How do they influence our choice architecture? What are the potential advantages and risks of using such tools? And most importantly, why should we care about this?

What are nudges?

In a book published in 2008, Richard H. Thaler and Cass R. Sunstein define nudges as “any aspect of the choice architecture that alters people’s behaviour in a predictable way without forbidding any options or significantly changing their economic incentives”.

A good example of this is supermarket design: fruits and vegetables are often placed at the entrance, while chips, candy and alcohol are often much further away. Through this, consumers are encouraged to make better, healthier choices: the kind of choices they are assumed to favour. On the other hand, nudges can work in a less benevolent way: when you order a combo at a fast-food restaurant, you may be asked whether you want to make it a large one. You are much more likely to make that decision if you are presented with this possibility this way, than you would be if you had to actively look for the option on your own. Nudges, in brief, are subtle and almost imperceptible tools that influence your choices without coercion or force. They gently push you toward a trajectory that you remain free not to take.

Basically, nudges are meant to help us make the choice that we would most certainly make were we fully rational. 

Thaler and Sunstein are big proponents of nudges, they genuinely believe that these tools can be put at the service of human development and the common good. Their faith is mostly based on a simple premise: that people are generally quite bad at making rational decisions, even after they have identified what’s good for them. For example, I may know that investing in a good retirement plan is the most beneficial thing for me to do, as it would maximize future-me well-being. Yet, I may struggle on a daily basis to save for retirement, and instead spend my money on immediately available gadgets. This is because, like most human beings, I may have conflicting desires, and I tend to favour actions that will generate instant gratification instead of those that will benefit …

Read the full article which is published on Daily Philosophy (external link)