“So to put it simply, forcing people to choose is not always wise, and remaining neutral is not always possible.”
Nobel Laureate Richard Thaler and Cass Sunstein present a compelling argument for using choice architecture to nudge people into making the better choice from amongst the available options. More broadly the authors advocate for libertarian paternalism; the idea that people should be free to make decisions for themselves (libertarian) conditional on providing a nudge for the more ideal decision (paternalism).
The paternalism part of their philosophy originates from the observation that people are not perfectly rational. They are prone to biases, such as the self-serving bias, the money illusion, the tendency for collaborative filtering and much more. These biases prevent people from making the best available choice for themselves across all aspects of life, from retirement planning to preventing environmental damage. The authors caution that in the absence of paternalism practicing libertarianism could lead to bias-influenced ineffective decisions, thereby rooting the need for paternalism.
The authors provide a curated reading experience. Slowly building the tempo. They start with some less controversial fields such as 401 contributions and organ donation, wherein libertarian paternalism has yielded positive results. Having laid some credibility, they build up to more controversial fields such as privatizing marriage and modifying doctor-patient relationships under the tenet of libertarian paternalism. Finally, they defend their stance against some counter-arguments point by point. The book is a great example of literary swordsmanship.
Nudge is a book replete with knowledge and ideas. It provides an interesting insight into the current inefficiencies, a plausible explanation and solution for it. The concepts introduced in Nudge are applicable across many, if not all spheres of life. In addition, the book has some useful everyday tips, on topics ranging from buying warranty to investing in index funds. As such, everyone can gain something by experiencing the literary swordsmanship of Nudge.
