Nudges

Question 1

Thaler and sunstein (2003,09)

Answer 1

1. Nudges can steer people towards better outcomes without coercion.
2. Libertarian paternalism and choice architecture

Question 2

Madrian & shea(2001)

Answer 2

Defaults significantly increase beneficial behaviours

Automatic enrolment boosts 401(k) retirement plan participation from 49% to 86%

Question 3

Johnson & Goldstein (2003)

Answer 3

Small design changes lead to large behavioural shifts

Opt-out organ donation 90% participation
Opt-in 15% participation

Question 4

Kahneman & Tversky (1979)

Answer 4

Behavioural biases justify soft interventions

Prospect theory: people are loss averse, present-biased, and influenced by framing

Question 5

Hausman & Welch (2010)

Answer 5

Nudges can be ethically problematic (manipulative, non-transparent)

Challenge legitimacy of “benevolent manipulation”

Question 6

Sunstein (2017)

Answer 6

Effectiveness varies by context and population

Even simple nudges work in some contexts but not others “nudge fatigue” may occur

Question 7

Loewenstein & Ubel (2010)

Answer 7

Nudges can distract from structural policy changes

Argue nudges are politically convenient but insufficient for large-scale effect

Question 8

Bhargava & Loewenstein (2015)

Answer 8

Long-term effects of nudges are uncertain

Some nudges show initial effects but fade over time