Richard H. Thaler is a world-renowned behavioral economist and professor of finance and psychology. Recently, he was interviewed by The Economist
. The discussion covers some of the fundamental studies in the field, like “save more tomorrow
” which encourages people to save more by signing up to increase their savings rate every year and auto-enrollment for pensions
that have drastically increased employee participation in pension funds.
Thaler also suggests, in the interview, that behavioral economics has the ability to influence human behavior for both good and bad. He argues that much of what behavioral economics does is remove barriers. The goal is not to change people
but to make life easier, but that idea can be skewed by organizations or individuals looking to capitalize on the biases of people. Whenever he is asked to sign a copy of his book Nudge
, he writes “nudge for good” which is a plea, he says, to improve the lives of people and avoid insidious behavior.
The list of ways companies nudge behavior is endless, and I would love to hear more examples from you all in the comments section. In the meantime here are a few- I’ll let you judge which ones “nudge for good”: