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Sludge Theory
Sludge in behavioral economics refers to any form of design, administrative, or policy-related friction that systematically impedes individuals' actions or decisions. It encompasses a range of frictions such as complex forms, hidden fees, and manipulative defaults that increase the effort, time, or cost required to make a choice, often benefiting the designer at the expense of the user's interest. The concept of sludge highlights the importance of transparent and user-friendly design in promoting welfare, efficiency, and equity in decision-making processes. Sludge was popularized by behavioral economist Richard Thaler and legal scholar Cass Sunstein. They introduced it as the "dark cousin" of nudging in their book '' Nudge: Improving Decisions About Health, Wealth, and Happiness.'' See also * Nudge theory * choice architecture * Red tape Red tape is a concept employed to denounce excessive or redundant regulation and adherence to formal rules for creating unnecessary constr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Behavioral Economics
Behavioral economics is the study of the psychological (e.g. cognitive, behavioral, affective, social) factors involved in the decisions of individuals or institutions, and how these decisions deviate from those implied by traditional economic theory. Behavioral economics is primarily concerned with the bounds of rationality of economic agents. Behavioral models typically integrate insights from psychology, neuroscience and microeconomic theory. Behavioral economics began as a distinct field of study in the 1970s and 1980s, but can be traced back to 18th-century economists, such as Adam Smith, who deliberated how the economic behavior of individuals could be influenced by their desires. The status of behavioral economics as a subfield of economics is a fairly recent development; the breakthroughs that laid the foundation for it were published through the last three decades of the 20th century. Behavioral economics is still growing as a field, being used increasingly in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Richard Thaler
Richard H. Thaler (; born September 12, 1945) is an American economist and the Charles R. Walgreen Distinguished Service Professor of Behavioral Science and Economics at the University of Chicago Booth School of Business. In 2015, Thaler was president of the American Economic Association. Thaler is a theorist in behavioral economics. He has collaborated with Daniel Kahneman, Amos Tversky, and others in further defining that field. In 2018, he was elected a member in the National Academy of Sciences. In 2017, he was awarded the Nobel Memorial Prize in Economic Sciences for his contributions to behavioral economics. In its announcement, the Royal Swedish Academy of Sciences stated that his "contributions have built a bridge between the economic and psychological analyses of individual decision-making. His empirical findings and theoretical insights have been instrumental in creating the new and rapidly expanding field of behavioral economics." Personal life Thaler was born in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cass Sunstein
Cass Robert Sunstein (born September 21, 1954) is an American legal scholar known for his work in U.S. constitutional law, administrative law, environmental law, and behavioral economics. He is also ''The New York Times'' best-selling author of ''The World According to Star Wars'' (2016) and ''Nudge'' (2008). He was the administrator of the White House Office of Information and Regulatory Affairs in the Obama administration from 2009 to 2012. Sunstein serves as the Robert Walmsley University Professor at Harvard Law School. He was previously a professor at the University of Chicago Law School from 1981 to 2008. In 2014, studies of legal publications found Sunstein to be the most frequently cited American legal scholar by a wide margin.{{Nudge Theory Early life and education Sunstein was born on September 21, 1954, in Waban, Massachusetts, to Marian (née Goodrich), a teacher, and Cass Richard Sunstein, a builder, both Jewish. He has said that as a teenager, he was briefly inf ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Nudge Theory
Nudge theory is a concept in behavioral economics, decision making, behavioral policy, social psychology, consumer behavior, and related behavioral sciences that proposes adaptive designs of the decision environment (choice architecture) as ways to Social influence, influence the behavior and decision making, decision-making of groups or individuals. Nudging contrasts with other ways to achieve compliance, such as education, legislation or enforcement. The nudge concept was popularized in the 2008 book ''Nudge (book), Nudge: Improving Decisions About Health, Wealth, and Happiness'', by behavioral economist Richard Thaler and legal scholar Cass Sunstein, two American scholars at the University of Chicago. It has influenced British and American politicians. Several nudge units exist around the world at the national level (UK, Germany, Japan, and others) as well as at the international level (e.g. World Bank, United Nations, UN, and the European Commission). There is ongoing debate o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Improving Decisions About Health, Wealth, And Happiness
Improvement is the process of a thing moving from one state to a state considered to be better, usually by a change or addition that improves. The concept of improvement is important to governments and businesses, as well as to individuals. History of the concept The term "improvement" in general means "gradual, piecemeal, but cumulative betterment", which can refer to both individuals and societies as a whole. The term "improvement" historically referred to land improvement, the process of making wildland more suitable for human uses, particularly the cultivation of crops.Alan Craig Houston, ''Benjamin Franklin and the Politics of Improvement'' (2008), p. 12. Agricultural writers contrasted "improvement" with the traditional custom that governed farming practices at the time. The belief in agricultural "improvement" was the belief that the earth could be made more fruitful. More specifically, it was the belief that "the knowledge of nature would allow the best possible use of r ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Choice Architecture
Choice architecture is the design of different ways in which choices can be presented to decision makers, and the impact of that presentation on decision-making. For example, each of the following: * the number of choices presented * the manner in which attributes are described * the presence of a "default" can influence consumer choice. As a result, advocates of libertarian paternalism and asymmetric paternalism have endorsed the deliberate design of choice architecture to nudge consumers toward personally and socially desirable behaviors like saving for retirement, choosing healthier foods, or registering as an organ donor. These interventions are often justified by advocates of libertarian paternalism in that well-designed choice architectures can compensate for irrational decision-making biases to improve consumer welfare. These techniques have consequently become popular among policymakers, leading to the formation of the UK's Behavioural Insights Team and the White Hous ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Red Tape
Red tape is a concept employed to denounce excessive or redundant regulation and adherence to formal rules for creating unnecessary constraints on action and decision-making. The occurrence of red tape is usually associated with governments but also extended to corporations. While the term is intended to describe an institutional pathology, some organizational theorists have argued that the existence of practices seen as red tape may be beneficial, and others have pointed to difficulties with distinguishing red tape from legitimate procedural safeguards. Red tape is in excess of the necessary ''administrative burden,'' or cost to the public, of implementing government policies and procedures. This definition is also consistent with popular usage, which generally views red tape as negative. Red tape can hamper the ability of firms to compete, grow, and create jobs. Research finds red tape has a cost to public sector workers, and can reduce employee well-being and job satisfactio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
