Nudge: The Final Edition

Nudge: The Final Edition

Nudge: The Final Edition

Nudge: The Final Edition

Paperback(Revised)

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Overview

*Once again a New York Times bestseller! First the original edition, and now the new Final Edition*

An essential new edition―revised and updated from cover to cover―of one of the most important books of the last two decades, by Nobel Prize winner Richard H. Thaler and Cass R. Sunstein


More than 2 million copies sold

Since the original publication of Nudge more than a decade ago, the title has entered the vocabulary of businesspeople, policy makers, engaged citizens, and consumers everywhere. The book has given rise to more than 400 “nudge units” in governments around the world and countless groups of behavioral scientists in every part of the economy. It has taught us how to use thoughtful “choice architecture”—a concept the authors invented—to help us make better decisions for ourselves, our families, and our society.

Now, the authors have rewritten the book from cover to cover, making use of their experiences in and out of government over the past dozen years as well as an explosion of new research in numerous academic disciplines. To commit themselves to never undertaking this daunting task again, they are calling this the “final edition.” It offers a wealth of new insights, for both its avowed fans and newcomers to the field, about a wide variety of issues that we face in our daily lives—COVID-19, health, personal finance, retirement savings, credit card debt, home mortgages, medical care, organ donation, climate change, and “sludge” (paperwork and other nuisances we don’t want, and that keep us from getting what we do want)—all while honoring one of the cardinal rules of nudging: make it fun!

Product Details

ISBN-13: 9780143137009
Publisher: Penguin Publishing Group
Publication date: 08/03/2021
Edition description: Revised
Pages: 384
Sales rank: 29,911
Product dimensions: 5.50(w) x 8.40(h) x 1.10(d)

About the Author

Richard H. Thaler was awarded the 2017 Nobel Memorial Prize in Economic Sciences for his contributions to the field of behavioral economics. He is the Charles R. Walgreen Distinguished Service Professor of Behavioral Science and Economics at the University of Chicago Booth School of Business. He is a member of the National Academy of Science and the American Academy of Arts and Sciences, and in 2015 he was the president of the American Economic Association. He has been published in numerous prominent journals and is the author of Misbehaving: The Making of Behavioral Economics.

Cass R. Sunstein is the Robert Walmsley University Professor at Harvard Law School, where he is the founder and director of the Program on Behavioral Economics and Public Policy. From 2009 to 2012 he served in the Obama administration as administrator of the White House Office of Information and Regulatory Affairs, from 2020 to 2021 he served as chair of the Technical Advisory Group for Behavioral Insights and Health at the World Health Organization, and in 2021 he joined the Biden administration as senior counselor and regulatory policy officer in the Department of Homeland Security. His many books include Impeachment: A Citizen's Guide, Too Much Information, and, with Daniel Kahneman and Olivier Sibony, Noise. He is the recipient of the 2018 Holberg Prize, awarded annually to a scholar who has made outstanding contributions to research in the arts, humanities, social sciences, law, or theology.

Read an Excerpt

Common "Nudges"

  1. The design of menus gets you to eat (and spend) more. For example, lining up all prices on either side of the menu leads many consumers to simply pick the cheapest item. On the other hand, discretely listing prices at the end of food descriptions lets people read about the appetizing options first…; and then see prices.
  2. "Flies" in urinals improve, well, aim. When Amsterdam's Schiphol Airport was faced with the not uncommon issue of dirty urinals, they chose a unique solution: by painting "flies" in the (center of) commodes, men obligingly aimed at the insects, reducing spillage by 80 percent.
  3. Credit card minimum payments affect repayment schedules. Among those who only partially pay off credit card balances each month, the repayment level is correlated with the card's minimum payment — in other words, the lower the minimum payment, the longer it takes a consumer to pay off the card balance.
  4. Automatic savings programs increase savings rate. All over the country, companies are adopting the Save More Tomorrow program: firms offer employees who are not saving very much the option of joining a program in which their saving rates are automatically increased whenever they get a raise. This plan has more than tripled saving rates in some firms, and is now offered by thousands of employers.
  5. "Defaults" can improve rates of organ donation. In the United States, about one–third of citizens have signed organ donor cards. Compare this to Austria, where 99 percent of people are potential organ donors. One obvious difference? Americans must explicitly consent to become organ donors (by signing forms, for example) while Austrians must opt out if they do not want to be organ donors.

Table of Contents

Preface to the Final Edition xi

Introduction 1

Part I Humans and Econs

1 Biases and Blunders 23

2 Resisting Temptation 49

3 Following the Herd 64

Part II The Tools of the Choice Architect

4 When Do We Need a Nudge? 91

5 Choice Architecture 103

6 But Wait, There's More 130

7 Smart Disclosure 137

8 #Sludge 151

Part III Money

9 Save More Tomorrow 179

10 Do Nudges Last Forever? Perhaps in Sweden 198

11 Borrow More Today: Mortgages and Credit Cards 218

12 Insurance: Don't Sweat the Small Stuff 236

Part IV Society

13 Organ Donations: The Default Solution Illusion 253

14 Saving the Planet 281

Part V The Complaints Department

15 Much Ado About Nudging 311

Epilogue 335

Acknowledgments 340

Notes 341

Index 357

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