Nudge: FINAL Post

One Final Nudge: This may come as a surprise, but we humans are not machines (Econs, as the authors call it), but rather fallible creatures subject to short-cut decisions amid a life of geometrically increasing options. We have two decision-making systems—Automatic and Reflective—and much of the time the Automatic system overrides the Reflective one. The authors suggest that choice architects—any of us, like parents, bosses, friends—can act in the other’s best interest by employing simple and available nudging techniques to help them make good decisions. So, read Nudge, tweet or facebook these posts to your friends and colleagues, and nudge them to do the same.
a. P.S.—Here’s a BIG Bonus: If you want to hear Richard Thaler talk about Nudge live, check him out at Google Authors: Richard Thaler speaks at Google.

Nudge: Post #8

Framing: Context determines how people will react because most reaction is Automatic. People are much less Reflective and often don’t take the time to think, thus rely on their less rational Automatic decision helpmate. Choices often depend on how problems are stated. The authors offer a great example relevant to public policy about energy use. Option A: “If you use energy conservation methods, you will gain $350 a year.” Option B: “If you do not use energy conservation methods, you will lose $350 a year.” Given the previous discussion on “Gains and Losses,” can you guess which approach works best? Of course, Option B. So, framing works based on how things are stated and by what people will gain or lose.

Nudge: Post #7

Gains and Losses: People hate to lose. Period. Have you ever tried to donate a kid’s never-used toy to Goodwill? If you have, you know that they’ll fight you to the death to hold onto it, despite the fact that they haven’t touched it in years. In fact, if you WANT someone to use something, just threaten it and see the results. However, according to the authors, this loss aversion type of “cognitive nudge” encourages us not to make changes “even when changes are very much in our interests.”