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A theoretical framework explaining the mechanisms of nudging

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  • Löfgren, Åsa

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Nordblom, Katarina

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

In this paper we develop a theoretical model to clarify the underlying mechanisms that drive individual decision making and responses to behavioral interventions, such as nudges. The contribution of the paper is three-fold: First, the model provides a theoretical framework that comprehensively structures the individual decision-making process applicable to a wide range of choice situations. Second, we reduce the confusion regarding what should be called a nudge by offering a clear classification of behavioral interventions. We distinguish among what we label as pure nudges, preference nudges, and other behavioral interventions. Third, we identify the mechanisms behind the effectiveness of behavioral interventions based on the structured decision-making process. Hence, the model can be used to predict under which circumstances, and in which choice situations, a nudge is likely to be effective.

Suggested Citation

  • Löfgren, Åsa & Nordblom, Katarina, 2019. "A theoretical framework explaining the mechanisms of nudging," Working Papers in Economics 754, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0754
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    File URL: http://hdl.handle.net/2077/59617
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    More about this item

    Keywords

    Nudge; decision making; behavioral intervention;

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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