Nudge Theory

Richard Thaler - Creator of nobel prize winning 'Nudge Theory'

The concept is a relatively subtle policy shift that encourages people to make decisions that are in their broad self-interest. It’s not about penalising people financially if they don’t act in certain way. It’s about making it easier for them to make a certain decision.

“By knowing how people think, we can make it easier for them to choose what is best for them, their families and society,” wrote Richard Thaler and Cass Sunstein in their book Nudge, which was published in 2008.

A good recent example can be found in UK pension policy. In order to increase worryingly low pension saving rates among private sector workers, the Government mandated employers to establish an “automatic enrolment” scheme in 2012. This meant that workers would be automatically placed into a firm’s scheme, and contributions would be deducted from their pay packet unless they formally requested to be exempted. The theory was that many people actually wanted to put more money aside for retirement but they were put off from doing so by the need to make what they feared would be complicated decisions.

Since auto-enrolment was introduced by the Government in 2012, active membership of private sector pension schemes has jumped from 2.7 million to 7.7 million in 2016.

Source: Independent UK



Nudge theory and design:
















"we have created a simplistic model where our ‘Triple Diamond’ meet ‘Nudge for Good’. This model may not be the ultimate solution but it definitely is the first step in understanding the users better and building user +business-centric service"
http://green-dice.com/use-nudge-theory-service-design

http://www.extractable.com/insights/nudge-and-digital-design-driving-online-decision-making
https://www.emeraldinsight.com/doi/full/10.1108/02580540810915039
http://theconversation.com/what-the-mainstreaming-of-behavioural-nudges-reveals-about-neoliberal-government-85580
http://eprints.lse.ac.uk/37810/1/Designing_for_nudge_effects_%28lsero%29.pdf
https://enginess.io/insights/5-examples-of-nudge
https://www.interaction-design.org/literature/article/behavioural-economics-ideas-that-you-can-use-in-ux-design

https://themindsjournal.com/nudge-theory-infographic/


























































Specifically NZ use of nudge theory: 
https://thespinoff.co.nz/business/11-10-2017/kiwisaver-is-nudge-theory-in-action-but-is-it-a-nudge-too-far/

https://researcharchive.vuw.ac.nz/xmlui/bitstream/handle/10063/6309/paper_access.pdf?sequence=2
Although this paper focuses on around nudge laws and regulations in New Zealand it is an example of the theory being used in our current society and potentially working

“Design has always had the ability to impact people’s behaviour. Manipulated is a strong word – but they can be guided in the right direction. However, that can really only happen when design is applied across their entire journey. Any inconsistencies in their experience will break the ‘spell’. Not many organisations can apply design-led thinking across the spectrum of their activities comprehensively enough to truly manipulate consumers. Let’s hope that level of effort protects us all from exploitation.”-Sievert and Thomason
https://idealog.co.nz/casestudies/walk-way-how-design-subconsciously-influences-peoples-behaviour