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Theory

Nudge and choice architecture

A nudge is a change in how options are presented that makes a behavior more likely, without banning anything or changing incentives.

In Spanish
Nudge y arquitectura de decisión
Origin
Thaler and Sunstein (2008)

What problem it addresses

It addresses how to help people choose what they themselves would want, like saving or looking after themselves, without taking away their freedom to choose otherwise.

An example

A US company changed how new employees enrolled in its retirement plan.

You have to opt inRetirement planOut100%37%Take part
By default, no one is in. 37% take part.
You have to opt outRetirement planIn100%86%Take part
By default, everyone is in. 86% take part.

No one was forced to do anything. Only the default option changed.

Why it happens

  1. Every choice is presented in some way. There is no neutral design.

  2. We tend to follow the easiest path, like leaving what comes preselected.

  3. Designing that path changes what is chosen without removing any option.

Applications in design

  • Use it like this

    Make the option the person would want the easiest one, by default, within reach and at the right moment.

  • Avoid

    Using design to push toward what suits the company rather than the person.

  • Don’t fall for it

    Ask yourself what you would choose if all options were equally easy to find.

37% → 86%

Opt inDefault

What the research says

Participation in the retirement plan before and after automatic enrollment (Madrian and Shea, 2001).

Debated evidence. In practice the effect is usually smaller. In government nudge units, the average improvement was 1.4 points, versus 8.7 in academic studies (DellaVigna and Linos, 2022).

Authors and works

  1. 2008

    Richard Thaler and Cass Sunstein

    Coined the terms nudge and choice architecture.

  2. 2001

    Brigitte Madrian and Dennis Shea

    Measured the effect of automatic enrollment in a retirement plan.

Sources

Original sources

  • Thaler, R. H., & Sunstein, C. R. (2008). Nudge: Improving decisions about health, wealth, and happiness. Yale University Press.
  • Madrian, B. C., & Shea, D. F. (2001). The power of suggestion: Inertia in 401(k) participation and savings behavior. The Quarterly Journal of Economics, 116(4), 1149–1187. View source: Madrian, B. C., & Shea, D. F. (2001)

Academic reviews

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