In 2017, the University of Chicago economist Richard Thaler was awarded the Nobel prize for his pioneering work in behavioural economics. He is best known for his contributions to the field of ‘nudge’ theory, which explores how the decisions that individuals make can be influenced by the way that those decisions are framed.
Thaler’s work hasn’t gone unnoticed. Businesses have long understood that consumers can be ‘nudged’ into making decisions they might not have done otherwise. Think about the supermarket putting chewing gum on sale next to the till, or the server in a fast-food restaurant asking if you’d like to make it a large meal. But governments have also realised the potential for using Thaler’s work to improve government policy and to encourage individuals to take beneficial actions they might have otherwise avoided.
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