Should Governments Invest More in Nudging?

  title={Should Governments Invest More in Nudging?},
  author={Shlomo Benartzi and John Beshears and Katherine L. Milkman and Cass Robert Sunstein and Richard H. Thaler and Maya Shankar and Will Tucker-Ray and William J. Congdon and Steven E. Galing},
  journal={Psychological Science},
  pages={1041 - 1055}
Governments are increasingly adopting behavioral science techniques for changing individual behavior in pursuit of policy objectives. The types of “nudge” interventions that governments are now adopting alter people’s decisions without coercion or significant changes to economic incentives. We calculated ratios of impact to cost for nudge interventions and for traditional policy tools, such as tax incentives and other financial inducements, and we found that nudge interventions often compare… 
Efficiency Criteria for Nudges and Norms
This article outlines benefit-cost criteria for nudges and behavioral norms for a wide range of policy situations. The principal benefits from well-designed policies usually derive from promoting
The Use of Green Nudges as an Environmental Policy Instrument
This article discusses the use of green nudges—behavioral interventions aimed at reducing negative externalities—as an environmental policy instrument. We present a new framework for classifying
The Target Opportunity Costs of Successful Nudges
  • Avishalom Tor
  • Economics, Political Science
    Consumer Law and Economics
  • 2020
Nudges are increasingly popular, in large part due to the typically low costs required to implement them. Yet most often the main cost of nudging is due not to their implementation, but rather to the
When a Nudge Backfires: Combining (Im)Plausible Deniability with Social and Economic Incentives to Promote Behavioral Change
Both theory and recent empirical evidence on nudging suggest that observability of behavior acts as an instrument for promoting (discouraging) pro-social (anti-social) behavior. We connect three
Nudging for Tax Compliance: A Meta-Analysis
Tax compliance nudges are used increasingly by governments because of their perceived cost-effectiveness in raising tax revenue. We collect about a thousand treatment effect estimates from 45
Nudging as an Environmental Policy Instrument
We discuss the use of green nudges – nudges intended to reduce negative externalities – as an environmental policy instrument. A review of empirical studies reveals that green nudges can have a
Tutorial. A Behavioral Analysis of Rationality, Nudging, and Boosting: Implications for Policymaking
As recent trends in policymaking call for increased contributions from behavioral science, nudging and boosting represent two effective and relatively economic approaches for influencing choice
Nudges : complements or substitutes of traditional energy policy instruments ?
  • Economics
  • 2019
Though nudges are gaining attention as complements to traditional policies, evidence of the interplay between these two policy instruments is lacking. Here, we discuss and evaluate how combinations
Whom Do We Trust on Social Policy Interventions?
Abstract Social policy interventions, such as nudges (behavioral change techniques), have gained significant traction globally. But what do the public think? Does the type of expert proposing a nudge
On the misplaced politics of behavioural policy interventions
Government agencies around the world have begun to embrace the use of behavioural policy interventions (such as the strategic use of default options), which has inspired vigorous public discussion


The Welfare Effects of Nudges: A Case Study of Energy Use Social Comparisons
“Nudge”-style interventions are often deemed successful if they generate large behavior change at low cost, but they are rarely subjected to full social welfare evaluations. We combine a field
Defaults, Mandates, and Taxes: Policy Design with Active and Passive Decision-Makers
Growing evidence suggests that many people are surprisingly responsive to unconventional policy tools, such as defaults or choice-framing, yet unresponsive to conventional ones, such as taxes or
Household actions can provide a behavioral wedge to rapidly reduce US carbon emissions
This work uses a behavioral approach to examine the reasonably achievable potential for near-term reductions by altered adoption and use of available technologies in US homes and nonbusiness travel and estimates the plasticity of 17 household action types in 5 behaviorally distinct categories.
Savings Incentives for Low- and Moderate-Income Families in the United States: Why is the Saver's Credit Not More Effective?
This paper uses data from the largest tax preparer in the United States to estimate the impact of the "saver's credit," a US federal program providing financial incentives to encourage retirement
Automatically Green: Behavioral Economics and Environmental Protection
Careful attention to choice architecture promises to open up new possibilities for environmental protection – possibilities that go well beyond, and that may be more effective than, the standard
Behavior and Energy Policy
It is argued that a broader approach is merited, one that draws on insights from the behavioral sciences, to develop basic behavioral science into large-scale business and policy innovations.
Saving Incentives for Low- and Middle-Income Families: Why is the Saver's Credit Not More Effective?
This paper uses data from the largest tax preparer in the United States to estimate the impact of the "saver’s credit," aUSfederal program providing financial incentives to encourage retirement
Executive Order 13707: Using Behavioral Science Insights to Better Serve the American People
Executive Order – Using Behavioral Science Insights to Better Serve the American People A growing body of evidence demonstrates that behavioral science insights – research findings from fields such
Simpler : the future of government
The future of government arrived four years ago. Government became simpler, it became smarter, and Cass Sunstein was at the centre of it all. Drawing on state-of-the-art work in behavioural
Inference with “Difference in Differences” with a Small Number of Policy Changes
Abstract In difference-in-differences applications, identification of the key parameter often arises from changes in policy by a small number of groups. In contrast, typical inference assumes that