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Nudge: Improving Decisions About Health, Wealth, and Happiness
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Review
"[A] new book applying the lessons of social psychology and behavioral economics to everything from health care to climate maintenance. The authors of Nudge . . . agree with economists who'd like to reduce greenhouse gas emissions by imposing carbon taxes or a cap-and-trade system, but they think people need extra guidance."―John Tierney, New York Times"Two University of Chicago professors sketch a new approach to public policy that takes into account the odd realities of human behavior, like the deep and unthinking tendency to conform. Even in areas―like energy consumption―where conformity is irrelevant. Thaler has documented the ways people act illogically."―Barbara Kiviat, Time"A manifesto for using the recent behavioral research to help people, as well as government agencies, companies and charities, make better decisions."―David Leonhardt, The New York Times Magazine"Engaging, enlightening."―George Scialabba, Boston Sunday Globe"Sunstein and Thaler are very persuasive. . . . Great fun to read."―Dahlia Lithwick, Slate"An essential read . . . an entertaining book. . . . The book isn't only humorous, it's loaded with good ideas that financial-service executives, policy makers, Wall Street mavens, and all savers can use."―John F. Wasik, Boston Globe"An engaging and insightful tour through the evidence that most human beings don't make decisions in the way often characterized in elementary economics textbooks, along with a rich array of suggestions for enabling many of us to make better choices, both for ourselves and for society. . . . The conceptual argument is powerful, and most of the authors' suggestions are common sense at its best. . . . For that we should all applaud loudly."―Benjamin M. Friedman, New York Times Book Review"By a 'nudge,' Thaler and Sunstein mean a policy intervention into choice architecture that is easy and inexpensive to avoid and that alters people's behavior in a predictable way without forbidding any options or significantly changing an individual's economic incentives. . . . Thaler and Sunstein stress that if 'incentives and nudges replace requirements and bans, government will be both smaller and more modest.'"—George F. Will, Newsweek"Save the planet, save yourself. Do-gooders, policymakers, this one's for you."―Newsweek". . . an excellent rendition of how human beings view choices and make decisions."—Gurumurthy Kalyanaram & Sunanda Muralidharan, International Journal of Pharmaceutical and Healthcare Management Vol 5.4"As important a book as I've read in perhaps 20 years. It is a book that people interested in any aspect of public policy should read. It is a book that people interested in politics should read. It is a book that people interested in ideas about human freedom should read. It is a book that people interested in promoting human welfare should read."―Barry Schwartz, The American Prospect"Nudge helps us understand our weaknesses, and suggests savvy ways to counter them."―Emily Bobrow, New York Observer"This Poor Richard's Almanack for the 21st century . . . shares both the sagacity and the witty and accessible style of its 18th century predecessor."―Benjamin Gregg, Law and Politics Book Review"As bookstore shelves fill up with works by parlor-room thinkers who would entertain us with their economic nonsense, an entertaining book that also deeply informs could get lost in the shuffle. That book is Nudge. . . . Thaler and Sunstein's . . . attempt to deal with difficult issues is always stimulating."—Gene Epstein, Barron's (One of this season's recommended page-turners on economic, financial and political-economic issues)"Entertaining, engaging, and well written. . . . Highly recommended."―ChoiceA 2007 Top Seller in Business and Economics as compiled by YBP Library ServicesSelected as a finalist for the 2008 TIAA-CREF Paul A. Samuelson Award, given by the TIAA-CREF InstituteNamed one of the best business books of 2008 by The Financial TimesSilver medal winner of the 2008 Book of the Year Award in the category of Business & Economics, presented by ForeWord magazineWinner of the 2010 Kulp-Wright Book Award, given by the American Risk and Insurance Association"In this utterly brilliant book, Thaler and Sunstein teach us how to steer people toward better health, sounder investments, and cleaner environments without depriving them of their inalienable right to make a mess of things if they want to. The inventor of behavioral economics and one of the nation's best legal minds have produced the manifesto for a revolution in practice and policy. Nudge won't nudge you―it will knock you off your feet."―Daniel Gilbert, professor of psychology, Harvard University, Author of Stumbling on Happiness"This is an engaging, informative, and thoroughly delightful book. Thaler and Sunstein provide important lessons for structuring social policies so that people still have complete choice over their own actions, but are gently nudged to do what is in their own best interests. Well done."—Don Norman, Northwestern University, Author of The Design of Everyday Things and The Design of Future Things"This book is terrific. It will change the way you think, not only about the world around you and some of its bigger problems, but also about yourself."—Michael Lewis, author of The Blind Side: Evolution of a Game and Liar's Poker"Richard Thaler and Cass Sunstein's Nudge is a wonderful book: more fun than any important book has a right to be—and yet it is truly both."—Roger Lowenstein, author of When Genius Failed"How often do you read a book that is both important and amusing, both practical and deep? This gem of a book presents the best idea that has come out of behavioral economics. It is a must-read for anyone who wants to see both our minds and our society working better. It will improve your decisions and it will make the world a better place."—Daniel Kahneman, Princeton University, Nobel Laureate in Economics
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About the Author
Richard H. Thaler, winner of the 2017 Nobel Prize in Economics, is the Ralph and Dorothy Keller Distinguished Service Professor of Behavioral Science and Economics at the University of Chicago’s Graduate School of Business. His latest book is Misbehaving: The Making of Behavioral Economics. Cass R. Sunstein is the Robert Walmsley University Professor at Harvard Law School and most recently the author of Impeachment: A Citizen’s Guide.
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Product details
Hardcover: 293 pages
Publisher: Yale University Press; 1 edition (April 8, 2008)
Language: English
ISBN-10: 9780300122237
ISBN-13: 978-0300122237
ASIN: 0300122233
Product Dimensions:
6.1 x 1.1 x 9.2 inches
Shipping Weight: 1.4 pounds (View shipping rates and policies)
Average Customer Review:
4.0 out of 5 stars
593 customer reviews
Amazon Best Sellers Rank:
#39,813 in Books (See Top 100 in Books)
An interesting work. . . . It speaks of how conditions can be changed and perhaps improved by "nudging" people. Rather than "beating up" on people, subtly nudge them. Fascinating reading and very provocative. Is nudging good? Or manipulative?The authors, Richard Thaler and Cass Sunstein, faculty at the University of Chicago, define a "nudge" as (Page 6): ". . .any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives." Indeed, they define their perspective as "libertarian paternalism." They believe in freedom but also wish to use "nudges" to induce people to improve their health, and live longer and happier.One simple example? Has any male ever used a urinal with a fly painted onto it? This simple nudge reduces "spillage" by 40% as males involuntarily try to hit the "target." In the process, there is a benefit, less smelliness and messiness in the restroom.The book applies the nudge argument to investments, health, school choice, organ donation, the environment, marriage, and so on. In each case, they try to show how nudges and libertarian paternalism can improve the quality of life of individuals as well as providing social benefits.Questions do arise, as the authors themselves admit. Is this a manipulative approach? Do we subtly manipulate people into doing things that they might not voluntarily wish to do? Thaler and Sunstein address these issues. Each reader will have to determine how well they succeed. A provocative and fascinating work, well worth reading.
The point is very clear. We all have preconditioned manners of making decisions and instead of having to choose from thousands of options it makes more sense to nudge us to a more common ground than to leave us confused and frustrated. This of course is on condition that there is pure transparency of all the options. If you have ever read any books about psychology or studied the subject or have read Daniel Kahneman’s book Thinking Fast and Slow, than this book will not provide you a lot of new insight. It looks at a lot of old and some recent researches about how people who think they’re making rational decisions are in reality not and have pretty predictable decision patterns. The book then goes on to recommend how society could be better if we followed some type of Paternal Libertarianism where the ones providing choses like Insurance companies or government services nudge persons to make smarter decisions while being transparent of all the options and not hiding any of them. I agree with them almost 100%. Most of their suggestions and examples make sense as long as the ones nudging are 100% transparent. If you’re anything like me, you will say the book is just okay and you will not be blown away by any Wow moments. So you can either read the book or save time and just speak to someone who read the book and have a nice long discussion with them.
Nudge: Improving Decisions About Health, Wealth, and Happiness by Richard H. Thaler and‎ Cass R. Sunstein has a simple premise. Unlike classical economic theory, where people are fully rational and always do things in their best interest, we are really lazy, uninformed, and unmotivated. We make bad decision because we lack information, or space out, or are too stupid to investigate what descisions will make our lives better.Intuitively, this view appeals to me. One example: create online retirement forms with a default setting which generally benefit employees, rather than no setting at all. Most people don't really understand their retirement plans, if they even have one. So make their laziness work for them.Of course, the “Libertarian Paternalism†proposed in this work is problematic. Who makes the choices that we get to choose from? Can’t "they" rig the system for their benefit and not ours?Despite this, I think the author’s view of human nature is sound, and can lead to more intelligent discussions about what we, as a species and individuals in that species, can hope to accomplish.
No wonder Richard Thaler's work won him the Nöbel Prize in Economics! Built on the earlier work founding Behavioral Economics by Daniel Kahneman and Amos Tvarsky which de-throned the "Rational Actor" model of humans in Classical Economics, Kahneman and Tvarsky, joined by Paul Slovic, showed human thinking is hard-wired in evolution, beset by Heuristics and Biases which are provably non-rational. They answer the question often provoked by observations of others clearly acting against their self-interest. There has been 35 years of continuing research in this area, a Nöbel for Kahneman, even showing that Capuchin monkeys are hard-wired native economic thinkers and choosers. We act, as evolution indicates, for action in the short term, primarily in the lower level, fast thinking brain and with heuristics/algorithms sufficient to meet the test of "Probably Approximately Correct", with book of this name by Leslie Valiant. Humans are not randomly irrational, but predictably irrational, which is what makes The Nudge work effectively.Thaler gives us an alternative to formal control systems for humans based on rules, laws, behavioral/operant conditioning, "shoulds, oughts, musts". Humans ignore or rebel against the rules, and deny consequences for short term gains.Thaler's "Nudge" is the alternative, assuming people will act in their self-interest without depending or using rationality or reason. Thaler shows in his reserach and presents in his book how to shape choice using the newly discovered laws of predictable irrationality, or choice shaping.
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November 01, 2018
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