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Electronic copy available at: http://ssrn.com/abstract=2499658
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"!
Preliminary*draft*9/22/14*
all*rights*reserved*
*
*
Nudging:*A*Very*Short*Guide*
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#$%%!&'!()*%+,-*.!
!
Abstract*
!
This%brief%essay%offers%a%general%introduction%to%the%idea%of%nudging,%along%with%
a%list%of%ten%of%the%most%important%“nudges.”%It%also%provides%a%short%discussion%
of%the%question%whether%to%create%some%kind%of%separate%“behavioral%insights%
unit,”%capable%of%conducting%its%own%research,%or%instead%to%rely%on%existing%
institutions.%
%
I. LibertyDPreserving*Approaches*
!
! (/0,!1/2-3-,%!+$4,!+5,!6/70!/6!mandates%$*8%bans'!9/7!,:$012,;!+5,!37-0-*$2!
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+5,!6/70!/6!nudges!C!2-=,7+DE17,%,7A-*@!$117/$35,%!+5$+!%+,,7!1,/12,!-*!1$7+-3)2$7!
8-7,3+-/*%;!=)+!+5$+!$2%/!$22/<!+5,0!+/!@/!+5,-7!/<*!<$D'!F*!7,3,*+!D,$7%;!=/+5!
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=,3$)%,!+5,D!@,*,7$22D!3/%+!2-++2,!$*8!5$A,!+5,!1/+,*+-$2!+/!17/0/+,!,3/*/0-3!$*8!
/+5,7!@/$2%!?-*32)8-*@!1)=2-3!5,$2+5B'!
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3)%+/0,7%!+5$+!$!=-22!-%!8),!/7!+5$+!$!8/3+/7L%!$11/-*+0,*+!-%!%35,8)2,8!6/7!+5,!*,:+!
8$DI!%/!-%!$*!$2$70!32/34I!%/!-%!$)+/0$+-3!,*7/220,*+!-*!$!1,*%-/*!12$*I!%/!$7,!+5,!
8,6$)2+!%,++-*@%!/*!3/01)+,7%!$*8!3,22!15/*,%I!%/!-%!$!%D%+,0!6/7!$)+/0$+-3!1$D0,*+!
/6!37,8-+!3$78!=-22%!$*8!0/7+@$@,%'!F*!@/A,7*0,*+;!*)8@,%!-*32)8,!@7$15-3!<$7*-*@%!
6/7!3-@$7,++,%I!2$=,2%!6/7!,*,7@D!,66-3-,*3D!/7!6),2!,3/*/0DI!J*)+7-+-/*!6$3+%K!1$*,2%!
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35//%,0D12$+,'@/ABI!8,6$)2+!7)2,%!6/7!1)=2-3!$%%-%+$*3,!17/@7$0%!?$%!-*!J8-7,3+!
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%5/)28!=,!5,28!7,%1/*%-=2,!6/7!$*D!,77/7%!/7!-*6,2-3-+-,%!5,7,'!
Electronic copy available at: http://ssrn.com/abstract=2499658
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T!
!
A.*Nudges*Maintain*Freedom*of*Choice*
!
F+!-%!-01/7+$*+!+/!%,,!+5$+!+5,!@/$2!/6!0$*D!*)8@,%!-%!+/!0$4,!2-6,!%-012,7;!
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/6!5,$2+5E7,2$+,8!/7!6-*$*3,E7,2$+,8!-*6/70$+-/*;!,8)3$+-/*$2!3$01$-@*%;!1$1,7</74!
7,8)3+-/*;!$*8!1)=2-3!<$7*-*@%'!M5,*!/66-3-$2%!7,8)3,!/7!,2-0-*$+,!1$1,7</74!
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7,8)3-*@!1,/12,L%!=)78,*%'!(/0,!17/8)3+%!?%)35!$%!3,22!15/*,%!$*8!+$=2,+%B!$7,!
-*+)-+-A,!$*8!%+7$-@5+6/7<$78!+/!)%,'!(-0-2$72D;!0$*D!*)8@,%!$7,!-*+,*8,8!+/!,*%)7,!
+5$+!1,/12,!8/!*/+!%+7)@@2,!<5,*!+5,D!%,,4!+/!-*+,7$3+!<-+5!@/A,7*0,*+!/7!+/!
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,:-%+!=,6/7,'!
!
B.*Transparency*and*Effectiveness*
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V*D!/66-3-$2!*)8@-*@!%5/)28!=,!+7$*%1$7,*+!$*8!/1,*!7$+5,7!+5$*!5-88,*!$*8!
3/A,7+'!F*8,,8;!+7$*%1$7,*3D!%5/)28!=,!=)-2+!-*+/!+5,!=$%-3!17$3+-3,'!()11/%,!+5$+!$!
@/A,7*0,*+!?/7!$!17-A$+,!,012/D,7B!$8/1+%!$!17/@7$0!+5$+!$)+/0$+-3$22D!,*7/22%!
1,/12,!-*!$!1,*%-/*!17/@7$0;!/7!%)11/%,!+5$+!$!2$7@,!-*%+-+)+-/*!?%$D;!$!35$-*!/6!
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0$4,!5,$2+5D!6//8%!0/7,!A-%-=2,!$*8!$33,%%-=2,'!F*!,-+5,7!3$%,;!+5,!7,2,A$*+!$3+-/*!
%5/)28!*/+!=,!5-88,*!-*!$*D!<$D'!G/A,7*0,*+!8,3-%-/*%!-*!1$7+-3)2$7!%5/)28!=,!
%)=Y,3+!+/!1)=2-3!%37)+-*D!$*8!7,A-,<'!V!17-*3-1$2!$8A$*+$@,!/6!*)8@,%;!$%!/11/%,8!
+/!0$*8$+,%!$*8!=$*%;!-%!+5$+!+5,D!$A/-8!3/,73-/*'!ZA,*!%/;!+5,D!%5/)28!*,A,7!+$4,!
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2-A,%'!>1,**,%%!-*!@/A,7*0,*+;!8-%32/%-*@!=/+5!8$+$!$*8!1,76/70$*3,;!3$*!3/0=$+!
-*,66-3-,*3D!$*8!,A,*!3/77)1+-/*'!
!
C. The*Need*for*Evidence*and*Testing*
!
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<-22!7,%1/*8!+/!@/A,7*0,*+!-*-+-$+-A,%'!U)+!%/0,!1/2-3-,%;!-*32)8-*@!%/0,!*)8@,%;!
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+5,D!$7-%,B'!(/0,+-0,%!,01-7-3$2!+,%+%!7,A,$2!+5$+!+5,!12$**,8!7,6/70!<-22!-*8,,8!
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!
II. Ten*Important*Nudges*
*
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$)+/0$+-3$22D!,*7/22,8!-*!7,+-7,0,*+!12$*%;!+5,-7!%$A-*@%!3$*!-*37,$%,!
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