The Nudge: Behavioural Economics
From Future of Local Services to the Public
Contents |
Summary
Theorists of public policy suggest that individual behaviour can be shaped or 'nudged' toward positive actions by manipulating the environment within which people make their choices. These theories of behavioural economics reject the free-market idea of a rational economic subject in favour of men and women who act inconsistently and are week-willed, uninformed and lazy. Behavioural economics thus encourages fallible people to make better choices by marginally altering the environment within which they get to choose. An example of this might be a pension scheme which operates in terms of an 'opt-out' policy; where employees are enroled automatically rather than one which is provided for employees to choose to join.
Impacts
These theories of behavioural economics provide a new way of thinking for those involved in developing policy and those in local government tasked with encouraging residents to behave in more rational ways; for example, to consume less energy or to recycle more.
Relevence
Relevant to those in local government involved in policy formation.
References
Thaler, R. and Sunstein, C. (2008) 'Nudge: Improving Decisions About Health, Wealth and Happiness' yalepress.yale.edu/book.asp
www.guardian.co.uk/politics/2008/jul/12/economy.conservatives1
