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A review of nudges: definitions, justifications, effectiveness

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  • Congiu, Luca
  • Moscati, Ivan

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

  • Congiu, Luca & Moscati, Ivan, 2022. "A review of nudges: definitions, justifications, effectiveness," LSE Research Online Documents on Economics 115134, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:115134
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    File URL: http://eprints.lse.ac.uk/115134/
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    Cited by:

    1. Congiu, Luca & Botta, Enrico & Zoli, Mariangela, 2025. "Biases and nudges in the circular economy: A review," Ecological Economics, Elsevier, vol. 233(C).
    2. 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.
    3. James Alm & Lilith Burgstaller & Arrita Domi & Amanda März & Matthias Kasper, 2023. "Nudges, Boosts, and Sludge: Using New Behavioral Approaches to Improve Tax Compliance," Economies, MDPI, vol. 11(9), pages 1-22, September.
    4. Marteau, Theresa M. & Mantzari, Eleni & Hollands, Gareth J., 2025. "Do nudges need a regulatory push? Comparing the effectiveness and implementation of exemplar nudge (size-based) and non-nudge (price-based) dietary interventions," Social Science & Medicine, Elsevier, vol. 373(C).
    5. Luca Congiu & Ivan Moscati & Matteo Scacchi, 2025. "Digital Nudging and Cookie Rejection: An Experiment," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(1), pages 431-458, March.
    6. Argentiero, Amedeo & Cesareo, Massimo & Fasone, Vincenzo & Pedrini, Giulio & Presti, Giovambattista, 2025. "Contextual behavioral informed nudges to stimulate waste prevention and recycling. A framework and a research agenda," Ecological Economics, Elsevier, vol. 233(C).
    7. Haizhou Liu & Feihan Sun & Li Ding & Chongliang Ye & Haifeng Cao, 2025. "Green Action Catalysts in Rural China: The Role of Low-Carbon Design in Environmental Awareness and Engagement," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 2951-2978, March.
    8. 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.
    9. 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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    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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