BY Richard H. Thaler, 2021
Idea #1: We often make bad decisions based on either too little or overly complex information.
Idea #2: Human beings act mainly on gut feelings.
Idea #3: Sometimes we make faulty decisions because we succumb to temptation or act without thinking.
Idea #4: Some companies exploit the human tendency to make the wrong decisions.
Idea #5: Nudges are subtle changes in context that help us avoid making bad decisions.
Idea #6: Defaults are highly effective nudges that cause people to automatically do what’s best for them.
Idea #7: Nudges are most useful when we have too many choices or when the future is at stake.
Idea #8: Many people use nudges to achieve their goals.
Idea #9: States and other institutions should use nudges to encourage wise decisions.
They key message:
People often make unwise decisions, but the slightest of changes – so-called nudges – can give people incentives to make better decisions. That’s why countries and private institutions should also use nudges.
