3.0 out of 5 based on 1 reviews. – Customer review on 27/10/2008

Nudge is an interesting investigation that explores some of the new discoveries that are emerging from Behavioral Economics today.

The book covers a list of studies and biases showing how Humans continually and perpetually make certain types of economically irrational decisions. It shows how these irrational decisions stem from the manner in which choices are presented, or Choice Architecture.

The book implicitly covers how Choice Architecture can be exploited, but instead attempts to paint these new developments as potentially helpful. It then goes on to explore the idea of Libertarian Paternalism, an idea the authors have coined. Libertarian Paternalism is supposed to centre around the idea that by using Choice Architecture, most people will be nudged into making "better" decisions, while those who wish to opt out and exercise their right to choose, will still be able to do so unimpeded.

The later portions of the book cover how these ideas relate to specific economic problems facing America today such as health care coverage and retirement investment plans. For those not from the US or not particularly interested in US policy in excruciating detail, this portion of the book can easily be skipped.

Also, the book fails to address the somewhat socialist implications Libertarian Paternalism carries. The notion that a Choice Architect is able to nudge users into "better" options suggests that in these decisions, there is in fact a clear cut "better" option, when that might not be the case. The authors sidestep this issue by claiming that some Choice Architecture must be present when presenting choices, and hence nudging one way or another is not anymore immoral than presenting a random set of choices.

Overall, a somewhat interesting book, however, it misses some of the larger implications of the work discussed. It is also very America specific, for better or worse.