Decisions

Nudge: 6 key ideas

by Richard Thaler & Cass Sunstein

The core ideas of Nudge, each in under a minute, written in our own words. Want the full depth? Get the book.

1. IDEA 1 OF 6

   Choice architecture

   How options are presented shapes what people pick.

   There is no neutral design, so design deliberately.

2. IDEA 2 OF 6

   Defaults are powerful

   Most people stick with the default option.

   Making the better choice the default, like automatic pension enrolment, changes outcomes at scale.

3. IDEA 3 OF 6

   Libertarian paternalism

   You can steer people toward better choices while still leaving them free to opt out.

4. IDEA 4 OF 6

   Humans aren't econs

   Real people procrastinate, lack self-control and follow the herd.

   Good systems are built for humans, not idealised rational agents.

5. IDEA 5 OF 6

   Give feedback

   People make better choices when they can see the effects, like an energy meter that shows consumption in real time.

6. IDEA 6 OF 6

   Simplify the hard choices

   The more complex and infrequent a decision, the more people benefit from guidance and clear defaults.