Nudge Theory, first formulated by the Nobel Laureate Richard Thaler, is part of a relatively new field called behavioral economics, which believes that subtle conditioning and small environmental changes can actually have a profound impact on the behavior of individuals and groups. This theory, and the practical repercussions of it, have been taken to heart by governments, businesses, and other institutions. The UK government, for example, created a whole department devoted to formulating policy influenced by the theory. The department has now been spun off as an independent social purpose company called “The Behavioural Insights Team”, which remains partly owned by The Cabinet Office.
Considering one of the measures adopted by the UK government may help to illustrate the guiding philosophy of Nudge theory, whilst also showing that it doesn’t compromise personal freedom in the way that other more paternalistic policies are said to. The UK government, when a taxpayer is in arrears, simply sends the person a letter which suggests that others in their situation have already paid. This has increased UK tax revenue, at little cost to the government. This tiny, infinitesimal change in the language of a letter illustrates the power of Nudge theory: it is possible to change the behavior of people without using incentives or threatening force. You can merely lead them to make the choice that they would have made in their own self-interest if only they were given full information.
To learn more about Nudge theory, see the infographic below.
Marcus Clarke has a degree in psychology, a master’s degree in health psychology, and has worked within the NHS as well as private organization WriterZone as a content writer. Marcus started psysci, psychology, and science blog, in order to disseminate meaningful research in bitesize morsels.
Image: Flickr
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