Book Review – Nudge
Image: Nudge by Lucy Lantz (CC BY-NC-ND)
4.5 out of 5 stars
I have always been fascinated by how people make decisions, but until reading Nudge by Richard H. Thaler and Cass R. Sunstein, I did not begin actively learning about this topic. This book sparked a passion in me regarding human behavior and how to influence it. Nudge taught me why people make seemingly idiotic decisions and how I can help myself and others not make such decisions. Whether you are wanting to exercise more, smoke less, or simply help our society, this book contains valuable insights.
Nudge consists of five main parts. The first part explains the concept of “Humans” and “Econs.” Thaler and Sunstein use the term Econ to describe the rational consumer - one who never acts without thinking, always makes the best possible decisions, and never gives into temptation, be it food, television, or hitting snooze just one more time. Of course, these individuals rarely, if ever, exist. This is where Humans come into play. Humans represent all of us. They make poor decisions and struggle with complex problems. Unfortunately, many parts of our society are designed with Econs, rather than Humans, in mind. Take, for example, saving for retirement, filling out financial aid applications, or choosing the best healthcare plan. If these things were designed with people’s actual behavior in mind, they would be much more effective. Thaler and Sunstein introduce the idea of the nudge. Nudges are changes in policy or format that encourage people to make the best decision for themselves while allowing them to choose a different option if they wish.
The second section of Nudge covers money, and how various nudges can assist people in making optimal financial decisions. From saving for retirement to investing to taking out loans and mortgages, nudges have us Humans covered. This section can help you manage your finances in the best way possible, and it is especially important to read if you work in or are interested in public policy. If the changes this book mentions were implemented, millions of lives could be changed for the better.
The third part of the book explains how nudges can be used in the healthcare system. This section is less pertinent to individuals, as it involves systemic changes, although I would still recommend reading it if you want to understand the strengths and weaknesses of our healthcare system. Using nudges in the realm of healthcare could provide care to more people as well as make it more affordable.
The last two sections of Nudge explain how nudges do not violate the freedom we all have a right to and address potential objections to the use of nudges. It is not necessary that you read these sections carefully unless the former parts of the book have not convinced you that nudges are useful and even necessary.
Overall, this book is fantastic. I would give it 4.5 out of 5 stars. The majority of the content was 5-star material, but I was put off by what seemed to me to be overly drawn-out explanations of certain topics, as well as a few grammatical errors. The book, published in 2008, also contains several outdated examples (Thaler and Sunstein refer to Netflix as a DVD rental company) but the information and advice it provides are timeless. I would highly recommend this book to anyone interested in improving their own decisions or influencing those of the people around them.
