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A review of nudges: Definitions, justifications, effectiveness

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  • Luca Congiu
  • Ivan Moscati

Abstract

In 2008, the behavioral economist Richard Thaler and the legal scholar Cass Sunstein published a book in which they advocated a novel approach to public policy based on the notion of a “nudge.” Roughly speaking, a nudge is an intervention in the decisional context that steers people's decisions by acting on their cognitive biases. The notion of a nudge generated an intense debate across different disciplines and proved popular with many policy makers around the world. The present article reviews the debate and research on nudges by focusing on three main dimensions: (1) the exact definition of nudges; (2) the justification of nudge policies, with a focus on “libertarian paternalism”; and (3) the effectiveness of nudges, both over time and in comparison with standard policies.

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  • Luca Congiu & Ivan Moscati, 2022. "A review of nudges: Definitions, justifications, effectiveness," Journal of Economic Surveys, Wiley Blackwell, vol. 36(1), pages 188-213, February.
    • Handle: RePEc:bla:jecsur:v:36:y:2022:i:1:p:188-213
    DOI: 10.1111/joes.12453
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    4. Wallander, Steven & Paul, Laura A. & Ferraro, Paul J. & Messer, Kent D. & Iovanna, Richard, 2023. "Informational nudges in conservation auctions: A field experiment with U.S. farmers," Food Policy, Elsevier, vol. 120(C).
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    7. Emiliano Brancaccio, 2022. "A discussion with Vernon Smith on the Classics, Marx, and Sraffa," PSL Quarterly Review, Economia civile, vol. 75(303), pages 425-431.
    8. James Alm & Lilith Burgstaller & Arrita Domi & Amanda März & Matthias Kasper, 2023. "Nudges, Boosts, and Sludge: Using New Behavioral Approaches to Improve Tax Compliance," Economies, MDPI, vol. 11(9), pages 1-22, September.
    9. Alcocer, Christian Diego & Torres, Elman Roman Torres, 2024. "Salience bias: A framework about the importance of prices and budget constraints perceptions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 110(C).
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