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A review of nudges: Definitions, justifications, effectiveness

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  • Luca Congiu
  • Ivan Moscati

Abstract

In 2008, the behavioral economist Richard Thaler and the legal scholar Cass Sunstein published a book in which they advocated a novel approach to public policy based on the notion of a “nudge.” Roughly speaking, a nudge is an intervention in the decisional context that steers people's decisions by acting on their cognitive biases. The notion of a nudge generated an intense debate across different disciplines and proved popular with many policy makers around the world. The present article reviews the debate and research on nudges by focusing on three main dimensions: (1) the exact definition of nudges; (2) the justification of nudge policies, with a focus on “libertarian paternalism”; and (3) the effectiveness of nudges, both over time and in comparison with standard policies.

Suggested Citation

  • Luca Congiu & Ivan Moscati, 2022. "A review of nudges: Definitions, justifications, effectiveness," Journal of Economic Surveys, Wiley Blackwell, vol. 36(1), pages 188-213, February.
    • Handle: RePEc:bla:jecsur:v:36:y:2022:i:1:p:188-213
    DOI: 10.1111/joes.12453
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    2. Eko Arief Yogama & Daniel J. Gray & Matthew D. Rablen, 2023. "Nudging for Prompt Tax Penalty Payment: Evidence from a Field Experiment in Indonesia," Working Papers 2023023, The University of Sheffield, Department of Economics.
    3. Emiliano Brancaccio, 2022. "A discussion with Vernon Smith on the Classics, Marx, and Sraffa," PSL Quarterly Review, Economia civile, vol. 75(303), pages 425-431.
    4. Anne Corcos, 2023. "How nudges and marketing, frame time preference “for your own good”: a behavioral model," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.
    5. Mario Cesare Nurchis & Marcello Di Pumpo & Alessio Perilli & Giuseppe Greco & Gianfranco Damiani, 2023. "Nudging Interventions on Alcohol and Tobacco Consumption in Adults: A Scoping Review of the Literature," IJERPH, MDPI, vol. 20(3), pages 1-10, January.
    6. Victor, Vijay & Nair, Aparna M. & Meyer, Daniel Francois, 2023. "Nudges and choice architecture in public policy: A bibliometric analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 104(C).
    7. Paul J. H. Schoemaker, 2023. "Exploring scenario planning through controlled experimentation: Commentary on Derbyshire et al. (2022)," Futures & Foresight Science, John Wiley & Sons, vol. 5(2), June.

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