Nudge Review

Nudge review

Behavior economics is an interesting developing field in economics. It aims at improving assumptions made in economics by combining behavioral science research and current economic models. The core to understand economics is the rationality of assumption. In book, Nudge, Richard H. Thaler and Cass R. Sunstein investigate this conflict between the assumption of rationality and behavioral science. Unlike many other books in the field, Nudge tries to do more than just inform and entertain. Thaler and Sunstein have provided a framework to be used and applied across the aspects of health, wealth, freedom, and other aspects of life. What’s more, they took a serious academic subject and made a strong case for more enlightened social and economic policies.

The title, “Nudge”, implies that it is about help getting people to act in their own best interests. Relying on people’s view about who decides what is in someone else’s best interest, one may or may not agree with this book. That’s why we can find out different reviews toward Nudge from different readers’ points of views.

As a best seller in 2008, Nudge has many proponents that highly praise the views contained in this book. Gail Mitchell Hoyt, a professor of economics department of Kentucky University, highly recommended this book to students. “The discussion not only informs the concepts we traditionally teach in economics courses, it forces us to take a humorous look at ourselves and human nature in general,” Hoyt stated. I totally agree with his view. Thaler and Sunstein put an interesting twist on policy discussion as they apply the ‘nudge’ theory to topics ranging from credit card debt to saving the planet. They also offer an added dimension to the role of economists as not just evaluators of costs and benefits, but as choice architecture experts and potential ‘nudgers’. Besides, according to Hoyt, “Nudge would be an excellent reading in understanding health care economics”. It is definitely...