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Which nudges do businesses like? Managers’ attitudes towards nudges directed at their business or at their customers

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  • Tikotsky, Ariel
  • Pe'er, Eyal
  • Feldman, Yuval

Abstract

Behaviorally informed interventions are growingly used to nudge consumers for various goals. While consumers are usually the target of nudges, businesses are involved in nudges in two manners: either they are the target of the nudges (i.e., government-to-business, or G2B nudges), or they serve as “nudging agents" on behalf of government regulation (i.e., government-to-business-to-consumer, or G2B2C nudges). Businesses’ support of nudges might be critical for nudges' success, but the perceptions of managers towards nudges have never been directly assessed. We surveyed owners and senior managers of small to medium-sized businesses and discovered an overall high level of support for nudges, and in particular for G2B nudges, as compared to G2B2C nudges. We also find variations between types of nudges and their domain. Specifically, the highest levels of support were found for reminders and for nudges that provide information, and for nudges that promote self-regulation. Lower levels of support were found for nudges that involve incentive design or enhanced consumer protections. Policy makers should thus consider the perceptions of business leaders (both as targets of nudges and as nudging agents) to ensure nudges' success.

Suggested Citation

  • Tikotsky, Ariel & Pe'er, Eyal & Feldman, Yuval, 2020. "Which nudges do businesses like? Managers’ attitudes towards nudges directed at their business or at their customers," Journal of Economic Behavior & Organization, Elsevier, vol. 170(C), pages 43-51.
    • Handle: RePEc:eee:jeborg:v:170:y:2020:i:c:p:43-51
    DOI: 10.1016/j.jebo.2019.11.010
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    References listed on IDEAS

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    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • K2 - Law and Economics - - Regulation and Business Law
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation

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