Friday, April 16, 2010

Nudge: Improving Decisions about Health, Wealth, and Happiness: Richard Thaler and Cass Sunstein

One would like to assume that given enough information and a variety of choices that a reasonable person would be able to make decisions devoid of unsound external influence. To some this is called paternal libertarianism or retaining the liberty of having choices however slight incentives or nudges are utilized to create a “metered amount of regulation”. The goal is to allow people to take responsibility for their actions by understanding the direct and indirect consequences while keeping them generally free from harm.

In the book Nudge by Richard Thaler and Cass Sunstein the idea of shaping choices smartly is illustrated in examples from grocery store product placement to default application selections. The concern is that by altering the order in which choices are presented one can help shape the perceived value that each choice represents and in essence shape the selection process while still leaving the possibility for self appraised alternatives to exist.

For anyone who has to interact with those they wish to influence the idea of knowing how to shape a question in order to receive the desirable answer is valuable. There was a story on NPR a while back (which I cannot find now) in which giving a child a choice or whether to wear a red or green jacket outside was more useful then simply telling a child to put on a jacket. The inference is that the jacket is automatic but the there is a choice available, red or green. The child still feels as if the important decision making is up to them (or that they have some control) while still being protected from inclement weather.

There are similar examples in the book, especially when it comes to choosing things such as energy providers (the choice isn’t whether you want/need one but instead you get to select which one provides which service). Granted many of the stories are oversimplified the bridging between the arguments is still strong enough to warrant paying attention. I found the voice of the book more personal, as if in a living room conversation with a friend or co-worker instead of being lectured to by a professor, which was fine if not mildly campy at times.

In all it was a quick book to read, not entirely full of new information but the collection offered was good enough to either get one started on the idea of “choice architecture” or offer some different insight into use and framing of selections. At the very least you will look at the grocery store in a new way and may even figure out how to ask someone a question in such a way that they will respond how you want. That alone is worth the price.

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