Nudge Theory Won a Nobel Prize
To nudge is to push gently. In behavioural economics the word names a specific idea about changing choices without forcing them.
To nudge is to push someone gently, usually with the elbow. Behavioural economics borrowed the word for a precise idea: a *nudge* changes how a choice is presented without removing any option or changing incentives. Making pension enrolment automatic while allowing opt-out is the standard example, and Richard Thaler's work on it won the Nobel Prize in Economics in 2017. The British government set up a Behavioural Insights Team, known informally as the Nudge Unit, in 2010.
- A gentle push. *A nudge in the ribs.*
- To prompt. *Nudge him into deciding.*
- A choice-architecture change. *A behavioural nudge.*
- Nudge theory — the concept. *Nudge theory.*
- Default option — the commonest nudge. *The default option.*
Word forms
| Form | Word | Example |
|---|---|---|
| Verb | nudge | Nudge it. |
| Past | nudged | She nudged him. |
| Noun | nudge | A gentle nudge. |
| Compound | nudge theory | Nudge theory. |
| Related | nudger | A nudger. |
- He nudged her elbow.Physical.
- Automatic enrolment is a nudge.Policy.
- Thaler won the Nobel in 2017.Economics.
What counts as a nudge
- Changing the default — opt-out rather than opt-in
- Reordering options — putting fruit at eye level
- Adding social information — most of your neighbours have paid
- Simplifying forms — removing friction from a desired action
- Not a nudge — bans, fines or significant financial incentives
Recorded from the 1600s, of uncertain origin, possibly Scandinavian and imitative of a small push.
What makes something a nudge rather than a rule?
A nudge leaves every option available and changes no incentives. Banning or taxing something is not a nudge.
What is the Nudge Unit?
The informal name for the British government's Behavioural Insights Team, set up in 2010 to apply these ideas to policy.