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Rethinking nudge: not one but three concepts

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  • MONGIN, PHILIPPE
  • COZIC, MIKAËL

Abstract

‘Nudge’ is a concept of policy intervention that originates in Thaler and Sunstein's (2008) popular eponymous book. Following their own hints, we distinguish three properties of nudge interventions: they redirect individual choices by only slightly altering choice conditions (here ‘nudge 1’); they use rationality failures instrumentally (here ‘nudge 2’); and they alleviate the unfavourable effects of these failures (here ‘nudge 3’). We explore each property in semantic detail and show that no entailment relation holds between them. This calls into question the theoretical unity of nudge as intended by Thaler and Sunstein and most of their followers. We eventually recommend pursuing each property separately, both in policy research and at the foundational level. We particularly emphasise the need for reconsidering the respective roles of decision theory and behavioural economics to delineate nudge 2 correctly. The paper differs from most in the literature in focusing on the definitional rather than the normative problems of nudge.

Suggested Citation

  • Mongin, Philippe & Cozic, Mikaã‹L, 2018. "Rethinking nudge: not one but three concepts," Behavioural Public Policy, Cambridge University Press, vol. 2(1), pages 107-124, May.
    • Handle: RePEc:cup:bpubpo:v:2:y:2018:i:01:p:107-124_00
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    References listed on IDEAS

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    1. Richard H. Thaler & Shlomo Benartzi, 2004. "Save More Tomorrow (TM): Using Behavioral Economics to Increase Employee Saving," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages 164-187, February.
    2. Christine Jolls & Cass R. Sunstein, 2006. "Debiasing through Law," The Journal of Legal Studies, University of Chicago Press, vol. 35(1), pages 199-242, January.
    3. Mozaffar Qizilbash, 2012. "Informed desire and the ambitions of libertarian paternalism," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(4), pages 647-658, April.
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    6. Hallsworth, Michael & List, John A. & Metcalfe, Robert D. & Vlaev, Ivo, 2017. "The behavioralist as tax collector: Using natural field experiments to enhance tax compliance," Journal of Public Economics, Elsevier, vol. 148(C), pages 14-31.
    7. Cass R. Sunstein & Richard H. Thaler, 2003. "Libertarian paternalism is not an oxymoron," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 48(Jun).
    8. Frisch, Deborah, 1993. "Reasons for Framing Effects," Organizational Behavior and Human Decision Processes, Elsevier, vol. 54(3), pages 399-429, April.
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    Cited by:

    1. Gintare Stankuniene & Dalia Streimikiene & Grigorios L. Kyriakopoulos, 2020. "Systematic Literature Review on Behavioral Barriers of Climate Change Mitigation in Households," Sustainability, MDPI, vol. 12(18), pages 1-18, September.
    2. Jean Baccelli & Marcus Pivato, 2021. "Philippe Mongin (1950–2020)," Theory and Decision, Springer, vol. 90(1), pages 1-9, February.
    3. D. Wade Hands, 2020. "Libertarian paternalism: taking Econs seriously," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(4), pages 419-441, December.
    4. Adrien Barton, 2021. "Foundations for an Ontology of Nudges," Post-Print hal-03512325, HAL.
    5. Andor, Mark Andreas & Götte, Lorenz & Price, Michael Keith & Schulze Tilling, Anna & Tomberg, Lukas, 2023. "Differences in how and why social comparisons and real-time feedback impact resource use: Evidence from a field experiment," Ruhr Economic Papers 1059, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. 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.
    7. Marc Fleurbaey, 2020. "Philippe Mongin 1950–2020," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(3), pages 399-403, October.

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    More about this item

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • K39 - Law and Economics - - Other Substantive Areas of Law - - - Other
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation

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