Question

a.) Provide a real life example of a "nudge" being used to encourage consumer behavior by a corporation, government or, organization that has led to improved utility or welfare of those being nudged.

b.) Explain how the nudging you cited as an example did or did not meet the other two principles of Thaler's guide for the use of nudge.

Note: use some of the concepts —— diminishing marginal utility, utility, price greater than utility received, cost and burden resulting from the nudge, nudges good for society, well-being of the customer, transparency, happiness and satisfaction.

Answer 1

A nudge, as we are going to use the term, is any facet of the selection design that alters people's behavior in an exceedingly certain means while not forbidding any choices or considerably dynamic their economic incentives. To count as a mere nudge, the intervention should be simple and low cost to avoid. Nudges aren't mandates. putt fruit at eye level counts as a nudge. prohibition food doesn't. In this kind, drawing on activity political economy,

the nudge is additional usually applied to influence behaviour. One of the foremost often cited samples of a nudge is that the etching of the image of a Musca domestica into the public toilet urinals at Amsterdam's Schiphol flying field, that is meant to "improve the aim".Nudge theory can even be wont to explore, understand, and justify existing influences on however folks behave, particularly influences that square measure unhelpful, with a read to removing or fixing them. There square measure uncountable these unhelpful 'nudges' everyplace - notably in advertising and government; some accidental, several terribly deliberate.