nudge theory

Syllable breakdown

Dictionary meaning

a framework in behavioural economics and public policy, developed by Richard Thaler and Cass Sunstein, proposing that people's choices can be steered toward better outcomes by designing choice environments in ways that preserve freedom while making the desired option easier, more salient, or the default; a nudge does not restrict options or change financial incentives, but subtly alters the architecture of choice; influential applications include setting organ donation as the default option, automatically enrolling employees in pension schemes, and placing healthy foods at eye level in cafeteria layouts; the theory has been adopted by governments worldwide and has transformed the design of public health and financial policy