Nudge: Improving Decisions about Health, Wealth, and Happiness

Richard H. Thaler · Cass R. Sunstein

Jan 2008 · Yale University Press

About this eBook

A New York Times bestseller with more than 1.5 million copies sold

Named a Best Book of the Year by the Economist and the Financial Times

“An essential read . . . loaded with good ideas that financial-service executives, policy makers, Wall Street mavens, and all savers can use.”—John F. Wasik, Boston Globe

“Save the planet, save yourself. Do-gooders, policymakers, this one's for you.”—Newsweek

Every day, we make decisions on topics ranging from personal investments to schools for our children to the meals we eat to the causes we champion. Unfortunately, we often choose poorly. Nobel laureate Richard Thaler and legal scholar and bestselling author Cass Sunstein explain in this important exploration of choice architecture that, being human, we all are susceptible to various biases that can lead us to blunder. Our mistakes make us poorer and less healthy; we often make bad decisions involving education, personal finance, health care, mortgages and credit cards, the family, and even the planet itself.

In Nudge, Thaler and Sunstein invite us to enter an alternative world, one that takes our humanness as a given. They show that by knowing how people think, we can design choice environments that make it easier for people to choose what is best for themselves, their families, and their society. Using colorful examples from the most important aspects of life, Thaler and Sunstein demonstrate how thoughtful “choice architecture” can be established to nudge us in beneficial directions without restricting freedom of choice. Nudge offers a unique new take—from neither the left nor the right—on many hot-button issues, for individuals and governments alike. This is one of the most engaging and provocative books to come along in many years.

Ratings and reviews

Would I call this book a masterpiece of economic theory? No. Would I call it a fun, quick read? Absolutely. It discussing interesting psychological aspects of humans and buyers. Reminded me a lot of "Buyer Behavior" a class I took during college which discussed the character traits and psychological undertones of buyers.

My first impression was Sunstein had gone into the self-help book business, but this is an incredible introduction to the power of policy making based on meaningful and well reasoned research. Maybe it's too wonky for those not interested in policy making. Maybe it's not wonky enough for those who are in that field already. But for someone interested in better understanding and analyzing policies as an interested voter or for someone who cares about how their company's retirement plan changes (or inadequacies) will have a big impact on their co-workers or their community, this is an incredible resource! They cover many topics as potentially benefiting from "nudges" which helps teach the reader through application in many fields and to various problems/dilemmas. I appreciate Sunstein's not-too-legal writing style as an attorney and as someone approaching a new subject; generally the writing is excellent and well organized. Union members and leaders, plan administrators, or anyone creating a form or helping others make important, rare decisions - this is the spring board into leading, helping, and working better, with less effort, and with better results. Highly recommended for anyone who might have a chance to help change the policies at their office, in their community, and even in helping clients make informed/optimal decisions.

Great book - very informative

About the author

Richard H. Thaler, winner of the 2017 Nobel Prize in Economics, is the Ralph and Dorothy Keller Distinguished Service Professor of Behavioral Science and Economics at the University of Chicago’s Graduate School of Business. His latest book is Misbehaving: The Making of Behavioral Economics. Cass R. Sunstein is the Robert Walmsley University Professor at Harvard Law School and most recently the author of Impeachment: A Citizen’s Guide.