Nudges and Choice Architecture: How Defaults Shape Decisions

Automatically enrolling employees into pension schemes, while allowing them to opt out, has substantially increased participation in many countries. Defaults are powerful because many people stick with them.

Putting healthier foods at eye level or first in a canteen line increases how often they are chosen. The order of options on a form can also affect choices.

Telling people that most of their neighbours pay taxes on time or use less energy can encourage similar behaviour.

The opposite of a nudge is sometimes called “sludge” — friction that makes it harder to do something, such as cancelling a subscription or claiming a rebate.

Supporters say nudges preserve freedom while improving outcomes. Critics worry about manipulation and transparency. Many guidelines suggest nudges should be transparent and easy to avoid.