Nudge

6 July 2024

---

Nudge is a book by Richard Thaler and Cass Sunstein that introduces the concept of nudges in the context of choice architecture. A nudge is a gentle push in the "right" direction, not a shove. When we are designing systems or processes that involve human decision-making, we can use nudges to help people make better choices, or at least choices that we believe are better for them.

Nudges are very often helpful because human beings are prone to making predictable mistakes. We are susceptible to biases and other cognitive errors, most of which are results of our nature as fallible beings. We are not omnipotent, we can't know everything, so we have to rely on shortcuts and imperfect heuristics to make decisions. Often we find it hard to resist temptations, especially when its in the best interest of others to make us do so. Sometimes we go against our own intuition and follow what others are doing, a consequence of our social nature. In short, the world presents us with a lot of choices when it comes to making decisions, and we are not always equipped to make the best ones. We might not even know what the best choice is, and this is where nudges come in. We can rely on the expertise of others to guide us in the right direction, provided that we trust them and believe that they have our best interests at heart.

A choice architect is a person responsible for organising the context in which people make decisions. For example:

• a doctor might prescribe alternative treatments for a patient;
• a product manager might design the user interface of a website;
• a parent might describe educational options to their child;
• a salesperson might present a product to a customer.

Not all decisions require nudges. Some decisions are trivial, and we can make them without much thought. But a lot of crucial decisions that we make in our lives are not trivial, and they can have long-lasting consequences. Thus, as choice architects, we should be mindful of the decisions that we are helping people make, to avoid the impression that we are manipulating or coercing them into making choices that are not in their best interests. Trust is a key factor in the success of nudges.

What are some conditions under which nudges can be helpful? The authors suggest the following:

• when the decision involves something that the decision-maker is prone to forget;
• when the decision is complex and difficult to make;
• when the decision is infrequent and people are inexperienced;
• when the feedback or consequences of the decision are slow or hard to observe.

The authors then present a set of properties that a good choice architecture should have:

• a set of defaults to offload the burden of decision-making from the decision-maker;
• a set of sensible prompts to guide the decision-maker in the right direction;
• a set of contingencies to help the decision-maker make the right choice in case of unforeseen circumstances;
• a set of feedback mechanisms to help the decision-maker learn from their past decisions;
• a set of mappings to help the decision-maker understand the consequences of their decisions;
• a structure that is easy to navigate and understand;
• a set of incentives to motivate the decision-maker to make the right choice;
• a curated set of options that are relevant and meaningful to the decision-maker;
• fun and engaging elements to make the decision-making process enjoyable;
• a set of relevant information presented in a clear and concise manner;

The opposite of a nudge is a sludge, which are design elements that make it harder for people to make certain choices. Sludges are helpful when we want to discourage people from making certain choices that we believe are harmful to them. Sludges are characterised by the extra friction and effort that they introduce into the decision-making process, such as extra steps, forms to fill out, warnings to read, or long wait times for responses.