Nudge

June 1, 2021
A fully revised version of the 2008 bestseller about making decisions. Thaler and Sunstein advocate what they call "libertarian paternalism," by which consumers and citizens can be "nudged" to make decisions of their own will that guide them and society toward a more perfect union. For instance, they write, "nudges"--usually matters of design in presenting the choices to be made, from whether to tip a cab driver to combatting the deleterious effects of climate change--can be coupled with other mechanisms, including taxes and even outright bans. In the case of Scandinavian countries, for instance, drunken driving is discouraged through high taxes on alcohol, nudges of various kinds to shame drink-impaired drivers from getting behind the wheel, and harsh penalties for anyone caught driving drunk. As for climate change, "we will need jackhammers and bulldozers, with pocketknives helping where they can." In other words, every tool helps, from nudges that encourage people to lighten their carbon footprints to cap-and-trade agreements. The authors argue effectively against what they call "required choice," preferring instead for vendors and governments to provide transparent information, such as labeling products that contain shellfish or peanuts so that those allergic to them can avoid buying them. Still, they allow, there are instances in which required choice is the best solution: One should be able to choose whether to buy one kind of canned soup over another but perhaps not to dictate the ingredients of every restaurant meal. In the spirit of Donald Norman's The Design of Everyday Things, which they cite, Thaler and Sunstein deliver a spirited argument to enable well-informed people to overcome various biases and "probabilistic harms" to do what is best for them and, in the present case, their fellow "American Humans." Students of design, politics, economics, and many other fields will delight in these provocative discussions.

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