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  • August 2017
  • Article
  • Psychological Science

Should Governments Invest More in Nudging?

By: Shlomo Benartzi, John Beshears, Katherine L. Milkman, Cass R. Sunstein, Richard H. Thaler, Maya Shankar, Will Tucker-Ray, William J. Congdon and Steven Galing
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Abstract

Governments are increasingly adopting behavioral science techniques for changing individual behavior in pursuit of policy objectives. The types of “nudge” interventions that governments are now adopting alter people’s decisions without coercion or significant changes to economic incentives. We calculated ratios of impact to cost for nudge interventions and for traditional policy tools, such as tax incentives and other financial inducements, and we found that nudge interventions often compare favorably with traditional interventions. We conclude that nudging is a valuable approach that should be used more often in conjunction with traditional policies, but more calculations are needed to determine the relative effectiveness of nudging.

Keywords

Nudge; Nudge Unit; Choice Architecture; Behavioral Science; Behavioral Economics; Savings; Pension Plan; Education; College Enrollment; Energy; Electricity Usage; Preventive Health; Influenza Vaccination; Flu Shot; Open Materials; Behavior; Governance; Economics; Policy; Power and Influence

Citation

Benartzi, Shlomo, John Beshears, Katherine L. Milkman, Cass R. Sunstein, Richard H. Thaler, Maya Shankar, Will Tucker-Ray, William J. Congdon, and Steven Galing. "Should Governments Invest More in Nudging?" Psychological Science 28, no. 8 (August 2017): 1041–1055.
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About The Author

John Beshears

Negotiation, Organizations & Markets
→More Publications

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    Automating Short-Term Payroll Savings: Initial Evidence from a Large U.K. Experiment

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    How to Choose a Default

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    Present Bias Causes and Then Dissipates Auto-enrollment Savings Effects

    By: John Beshears, James J. Choi, David Laibson and Peter Maxted
More from the Authors
  • Automating Short-Term Payroll Savings: Initial Evidence from a Large U.K. Experiment By: Sarah Holmes Berk, John Beshears, James J. Choi and David Laibson
  • How to Choose a Default By: John Beshears, Richard T. Mason and Shlomo Benartzi
  • Present Bias Causes and Then Dissipates Auto-enrollment Savings Effects By: John Beshears, James J. Choi, David Laibson and Peter Maxted
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