Nudge: When Do We Need a Nudge?

Chapter 4
When Do We Need a Nudge?

  This chapter is fairly short but brings a good meaning to how industries and businesses survive, in my opinion. Previously, my review of Chapter three, following the herd, we can see how nudges can make people do things. Also, we learn how nudges can be deceiving. Benefits now, costs later, is a description on how people choose things and thinking about the downsides in the near future. There are good habits that we can do in our lives, like taking a walk or designing our own film, these are good things that we should do. For a New Years Eve resolution, no one would say take less walks or design less movies. Benefits now, costs later is directly pointing to bad habits or choices like smoking (Number one example) or eating fatty foods. Again, for a New Years Eve resolution, you wouldn't say that you would want to smoke more or eat more fatty foods, that's just wrong. The benefit is, say for eating fatty foods, you can enjoy the taste and the cost is gaining weight.

  Degree of difficulty effects when we need a nudge. When turning on the television, we don't need help. But with picking the right mortgage, we do. There may be some words that we can't spell, but what is our solution? Use a spell checker or just google it.

  Imagine there are two worlds, one with just economists and the other mixed with plain humans with economists. The economist would strive and compete against each other but the mixed world would be interesting. Economists sell warranty plans to humans, though it may be a rip-off if looked carefully. We sometimes buy these rip-offs because the salesperson was good at explaining. It happens but that's how some businesses or companies survive.

  So, when do you think you'll need a nudge to help you the most, respectfully ?

  - When eating a tasty brownie.

  - When going for a mile run.

  - When playing too much games.

   Well, all of the above are okay, but mostly the going for a mile run is the best answer. Why is this so? Eating brownies and playing games are a habit that we tend to like. Running is a habit we want to do, so in order to do that you have to push that doer out, even though it takes hard work. In the end, you'll be sure to figure it out. So remember, not everyone is perfect or full-proof, our minds tend to lack to something right in our face due to our thinking. A friendly salesman could just take $100 off of you like that, we're not all economists, but we can sharpen up. Economists are human too, though harder to be 'nudged' upon.

  " Governments can, of course, outlaw some kinds of activities, but as libertarian paternalists we prefer to nudge -and we are keenly aware that the governments are populated by Humans." - First paragraph of page 88, Nudge.