Well-designed nudges can make the world (a bit) better
Published 19/07/2015 | 02:30
The economics profession has not had a stellar crisis. But if some branches of the discipline are floundering, others are doing a whole lot better. One field of inquiry can even make the bold claim that it is making the world a little better in many small but often important areas.
Understanding better the choices that people make and the motivation behind them is central to many companies' marketing strategies and tactics. It is just as important in designing public policy.
Behavioural economics has been trying to get beyond the basic assumption underpinning much of modern economics - that people are rational, utility-maximising automatons.