Professors Discuss Role of 'Nudging' in Influencing Decisions

Harvard University Professor Cass R. Sunstein ’75 and Richard H. Thaler, a professor of behavioral science at the University of Chicago, told a crowded auditorium on Wednesday evening that even small changes, such as shifting the layout of a cafeteria, can have large-scale impacts, such as reducing the risk of obesity in children.

At an event hosted by the John F. Kennedy Forum, Sunstein and Thaler discussed the concept of “libertarian paternalism,” a theory in behavioral economics that the presentation and transparency of information can “nudge” individuals toward making certain decisions while still ultimately allowing freedom of choice.

Sunstein and Thaler previously explored the issue of “libertarian paternalism” in their co-authored book, “Nudge: Improving Decisions About Health, Wellness, and Happiness.”

One example Thaler noted was the replacement of the food pyramid with the food plate. The illustration of the plate, Thaler asserted, makes the diagram easier to understand and therefore encourages healthier eating habits without actively restricting what people can consume.

Both Thaler and Sunstein admitted that their work on the theory of nudging has attracted criticism.

Sunstein said that the study and implementation of behavioral economic theories—like nudging—used to be viewed favorably in Washington, but has attracted concern. Sunstein said that he thinks this transition in attitude occurred because people believe that nudging removes choice.

Sunstein and Thaler defended their research, saying that the study and experimentation with behavioral economics can lead to policy changes that prompt individuals to make better and more cost-efficient choices for themselves.

“The deep understanding is that if you make something easier people are more likely to do it ... and that price is not the only thing that matters,” Thaler said. He also said that the principles used in his research did not require a “deep understanding” of social sciences.

Thaler acknowledged, however, that experiments with nudging do not always translate into results in the real world.

“Not every exciting finding that gets reported will be replicated around the world,” he said. “Some stuff just won’t replicate at all.”