Book report nudge

Thumbs up! Nudge remains true to its promise to preserve freedom of choice, hence the apparently oxymoronic description of its authors' approach as libertarian paternalism, but it is unashamedly interventionist in framing those choices.

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While many on the right and on the left agree that such measures are perfectly appropriate, they go above and beyond the recommendations of libertarian paternalism. I think freedom has less to do with getting to choose and more to do with getting adequate information on the consequences of that choice. Thus the original set-up nudges people into a certain ways of operating with the technology. However, statistical studies have shown that hot hand is a myth. They may be set to preserve the status quo ante, but this may lead to undesirable consequences. Even though the odds are exactly the same, the numbers agreeing to the operation are radically different. Behavioral economics, a new area of research combining economics and psychology, has repeatedly documented how our apparently free choices are affected by the way options are presented to us. And the framing will affect the decisions. Presuming consent has been proved a very effective way to increase the supply of organs for transplant, and it is completely consistent with libertarianism in that everyone still has the ability to opt out of donating their organs post mortem. Nudge portrays the Rational Economic Man who shops and trades in Friedman's free markets as a myth. A couple of decades ago Australian workers went without a national pay increase and rather had this money directed into superannuation. It's a winner; I can feel it. This would ensure that borrowers at least know what their payments will be when the teaser rate ends.

Nudge portrays the Rational Economic Man who shops and trades in Friedman's free markets as a myth. However it is important to note that different comparative sets can frame different decisions.

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Occupational pension schemes, for example, can be established either on an opt-in basis - meaning employees have to make a positive decision to join - or as an opt-out, with workers automatically enrolled in the fund unless they choose to get out.

Thus couples are reluctant to get prenuptial agreements, and it is essential to design good default rules to govern contractual arrangements between domestic partners. This way the increase in contributions does not feel like a loss and the authors show that this way of increasing contributions leads to higher contributions than virtually any other method.

Book report nudge

Thus there is no such thing as a neutral design. Free markets often address all of these problems, but incentive conflicts may sometimes arise, especially when choosers do not notice the incentives they face.

Thaler and sunsteins view on nudges

Yet thoughtful liberals, unlike libertarians, will always be open to persuasion away from a purist application of their principles and Nudge offers a persuasive argument in policy areas like pensions and credit card regulation. Inheritance and other death benefits, e. Irrational humans also tend to follow the crowd, which means that peer comparisons form an important part of the 'choice architecture'. The book opens with a discussion of a school cafeteria and how you can affect the eating habits of kids simply by how you place the food on display. If you want to save this summary for later, download the free PDF and read it whenever you want. To make matters worse, the Medicare Part D website and associated information sources are very unfriendly to users, and because the prescription drug plans are constantly updating their drug prices, there is no guarantee that the best plan today will be the best plan tomorrow. Though allowing vouchers with which to choose between competing schools is not a panacea, it has been shown to improve student performance.

However, this involves a delicate balancing act because giving too much feedback renders warning systems useless as agents begin to ignore the information altogether. Then, the client takes a urine test and, if no recent smoking is detected, the money is returned.

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Nudge distils a scholarly and timely argument into a highly accessible book. Conversely, if something is complex and difficult, then people are less likely to follow through e.

Rated 8/10 based on 5 review
Book Review: “Nudge”