Nudge theory
Nudge theory lies within Behavioural Economics which is the study of psychology that analyzes the economic decisions people make. Factors that affect behaviour include bounded rationality, choice architecture, cognitive biases, discrimination, and herd mentality.
What is a nudge?
A nudge is a tiny change in the environment that can help people make better choices. Nudges are micro-modifications in design that align with “choice architecture.”
Prompts or nudges can be successful only if an individual is:
- Able to complete a task;
- Motivated to do so;
- Has a trigger to cue initiating the behaviour.
Based on Daniel Kahneman and Amos Tversky’s work Thinking, Fast and Slow, there are two sides of the brain that govern all of our decision-making. Nudges capitalise on our System 1 way of thinking.
