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Improve decisions about health, wealth, and happiness

Author Name: Richard H. Thaler

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Nudges are an aspect of choice design that alters people's behavior in a predictable way without forbidding any choice or significantly altering their material and moral incentives. Nudge will change the way we think about choice, showing how we can influence people and improve decisions related to health, wealth, and happiness. Using instructive real-life examples, authors Richard H. Thaler and Cass R. Sunstein demonstrate that no choice is ever presented in a neutral way. The question then becomes: When do we need a nudge in the right direction? The authors answer in their book: "In this book, we make two claims. The first is that seemingly small advantages can have enormous effects on people's behavior. Nudges are everywhere, even if we don't see them. Choice design, good and bad, is pervasive and unavoidable, and greatly influences our decisions. The second claim is that libertarian paternalism is not an oxymoron. Choice designers can preserve freedom of choice while nudging people in directions that improve their lives..." In the book, the authors touch on many areas, including savings, Social Security, credit markets, environmental policy, health care, marriage, and many others. However, as the authors point out, the range of potential applications is much broader than the topics they were able to address. Therefore, they hope that choice design and the power of nudges will inspire others to consider creative ways to improve human lives in other areas. Many of these arenas include private actions. They hope that workplaces, corporate boards, universities, religious organizations, clubs, and even families can benefit from the small practices of libertarian paternalism, which means “preserving freedom.” For governments, the authors hope that libertarian paternalism offers a true third way—one that can cut through some of the less smooth debates in contemporary democracies.