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On Nudging: A Review of Nudge: Improving Decisions About Health, Wealth and Happiness by Richard H. Thaler and Cass R. Sunstein

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  • Robert Sugden

Abstract

This paper reviews the case for libertarian paternalism presented by Thaler and Sunstein in Nudge. Thaler and Sunstein argue that individuals' preferences are often incoherent, making paternalism is unavoidable; however, paternalistic interventions should 'nudge' individuals without restricting their choices, and should nudge them towards what they would have chosen had they not been subject to specific limitations of rationality. I argue that the latter criterion provides inadequate guidance to nudgers. It is inescapably normative, and so allows nudgers' conceptions of well-being to override those of nudgees. Even if nudgees' rationality were unbounded, their revealed preferences might still be incoherent.

Suggested Citation

  • Robert Sugden, 2009. "On Nudging: A Review of Nudge: Improving Decisions About Health, Wealth and Happiness by Richard H. Thaler and Cass R. Sunstein," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 16(3), pages 365-373.
    • Handle: RePEc:taf:ijecbs:v:16:y:2009:i:3:p:365-373
    DOI: 10.1080/13571510903227064
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    Citations

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    Cited by:

    1. Schubert, Christian, 2017. "Green nudges: Do they work? Are they ethical?," Ecological Economics, Elsevier, vol. 132(C), pages 329-342.
    2. Joanna Rudzinska-Wojciechowska, 2017. "If you want to save, focus on the forest rather than on trees. The effects of shifts in levels of construal on saving decisions," PLOS ONE, Public Library of Science, vol. 12(5), pages 1-18, May.
    3. Heindl, Peter & Kanschik, Philipp, 2016. "Ecological sufficiency, individual liberties, and distributive justice: Implications for policy making," Ecological Economics, Elsevier, vol. 126(C), pages 42-50.
    4. Bridget O'Laughlin & Ben Fine & Deborah Johnston & Ana C. Santos & Elisa Waeyenberge, 2016. "Forum 2016," Development and Change, International Institute of Social Studies, vol. 47(4), pages 640-663, July.
    5. Robert Sugden, 2017. "Do people really want to be nudged towards healthy lifestyles?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 64(2), pages 113-123, June.
    6. Altman, Morris, 2012. "Implications of behavioural economics for financial literacy and public policy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 677-690.
    7. Yan Zhang & Frank Schweitzer, 2021. "Quantifying the importance of firms by means of reputation and network control," Papers 2101.05010, arXiv.org.
    8. Jose-Luis Pinto-Prades & Jose-Maria Abellan-Perpiñan, 2012. "When normative and descriptive diverge: how to bridge the difference," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(4), pages 569-584, April.
    9. Adam Oliver, 2013. "Should Behavioural Economic Policy Be Anti‐Regulatory?," Health Economics, John Wiley & Sons, Ltd., vol. 22(4), pages 373-375, April.
    10. Gerardo Infante & Guilhem Lecouteux & Robert Sugden, 2016. "‘On the Econ within’: a reply to Daniel Hausman," Journal of Economic Methodology, Taylor & Francis Journals, vol. 23(1), pages 33-37, March.
    11. Christian Schubert, 2012. "Pursuing Happiness," Kyklos, Wiley Blackwell, vol. 65(2), pages 245-261, May.
    12. Sabine Frerichs, 2011. "False Promises? A Sociological Critique of the Behavioural Turn in Law and Economics," Journal of Consumer Policy, Springer, vol. 34(3), pages 289-314, September.
    13. Banerjee, Sanchayan & Galizzi, Matteo M. & John, Peter & Mourato, Susana, 2022. "What works best in promoting climate citizenship? A randomised, systematic evaluation of nudge, think, boost and nudge+," LSE Research Online Documents on Economics 115032, London School of Economics and Political Science, LSE Library.

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