May 2012

Probably everyone has read Thaler and Sunstein’s book Nudge by now. Their thesis is simple: we are overwhelmed and often paralysed by choice, and public policy should do more to ‘nudge’ us in the direction of better choices where possible. Influencing ‘choice architecture’ doesn’t remove our free-will, but it makes it easier for us to choose a better path, like opting out of organ donation, rather than in. The Cabinet Office now has a ‘Nudge Unit‘, and I am very keen on this route as a subtle and more effective way to improve the market, rather than just coming up with more red tape. Here are my favourite Top 10 Nudges, some because they are admirable, and some just because they are so clever. Read More