Thursday, August 14, 2008

Needing a Nudge

Although I've linked to a few books to read, I've never really discussed books here before. Still, always time to try something new!

I've been reading Nudge, a new book by American academics Thaler and Sunstein, and the only reason I'm writing about it is because it is on the current 'must read' lists of numerous politicians.

I think it's safe to say that this is first book by Yale University Press I've ever read, let alone purchased. However, in a similar vein to Freakonomics, Microtrends, and The Tipping Point, it's a comfortable, accessible read. In it Thaler and Sunstein say that if 'choice architects' give things a little thought they could design decisions so that people are 'nudged' in a certain way for the overall public good. For example, on starting a new job you are automatically enrolled in a pension scheme rather than having to make a conscious decision to join one. In doing this you save for your retirement and everyone will be better off. However, because they also want to allow choice, you always have the chance to opt out, thus the freedom to choose is preserved. They call this 'libertarian paternalism' and it will be a big thing in both the upcoming US election, and the next UK one.

This seems fairly sensible - but let's also be careful here. The pensions thing seems sensible, but another example they suggest is that organ donation should move to an 'opt out' rather than, in the UK at least, the current 'opt in' system. This is perhaps a bit more controversial - in effect the state would 'own' your organs for transplant upon your death (and more organ donation is needed) unless you'd made a conscious decision that they couldn't. Suddenly a nudge seems a bit more of a shove?? And I speak as someone who has had a donor card since aged 16.

Personally I feel there is an innate contradiction between 'libertarian' and 'paternalism', and it's one they don't quite solve - and I'm also not saying which one I tend toward! Nonetheless, it's a fascinating book and well worth a read. You may really agree with it, or may find it all very worrying, but it makes you think. You may not yet be aware of 'nudging' - but many key politicans are.

Have a browse at nudges.org.

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