Nudge Theory (Behavioral Economics) (Word DOCX)

Nudge theory is a flexible and modern concept for:
•  understanding of how people think, make decisions, and behave,
•  helping people improve their thinking and decisions,
•  managing change of all sorts, and
•  Identifying and modifying existing unhelpful influences on people.

Nudge theory was named and popularised by the 2008 book, 'Nudge: Improving Decisions About Health, Wealth, and Happiness', written by American academics Richard H Thaler and Cass R Sunstein. The book is based strongly on the Nobel prize-winning work of the Israeli-American psychologists Daniel Kahneman and Amos Tversky.

'Nudge' theory was proposed originally in US 'behavioural economics', but it can be adapted and applied much more widely for enabling and encouraging change in people, groups, or yourself.

Nudge theory can also be used to explore, understand, and explain existing influences on how people behave, especially influences which are unhelpful, with a view to removing or altering them. There are lots of these unhelpful 'nudges' everywhere – notably in advertising and government; some accidental, many very deliberate.