Nudge: Improving Decisions About Health, Wealth, and Happiness by Richard H. Thaler and Cass R. Sunstein has a simple premise. Unlike classical economic theory, where people are fully rational and always do things in their best interest, we are really lazy, uninformed, and unmotivated. We make bad decision because we lack information, or space out, or are too stupid to investigate what descisions will make our lives better.
Intuitively, this view appeals to me. One example: create online retirement forms with a default setting which generally benefit employees, rather than no setting at all. Most people don't really understand their retirement plans, if they even have one. So make their laziness work for them.
Of course, the “Libertarian Paternalism” proposed in this work is problematic. Who makes the choices that we get to choose from? Can’t "they" rig the system for their benefit and not ours?
Despite this, I think the author’s view of human nature is sound, and can lead to more intelligent discussions about what we, as a species and individuals in that species, can hope to accomplish.
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A nudge, as we will use the term, is any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives.
Richard H. Thaler, Cass R. Sunstein, et al.
Nudge: Improving Decisions About Health, Wealth, and Happiness
6,054 Kindle readers highlighted this
A choice architect has the responsibility for organizing the context in which people make decisions.
Richard H. Thaler, Cass R. Sunstein, et al.
Nudge: Improving Decisions About Health, Wealth, and Happiness
5,337 Kindle readers highlighted this
First, never underestimate the power of inertia. Second, that power can be harnessed.
Richard H. Thaler, Cass R. Sunstein, et al.
Nudge: Improving Decisions About Health, Wealth, and Happiness
4,549 Kindle readers highlighted this
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A nudge, as we will use the term, is any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives.Richard H. Thaler, Cass R. Sunstein, et al.Nudge: Improving Decisions About Health, Wealth, and Happiness6,054 Kindle readers highlighted thisA nudge, as we will use the term, is any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives.Richard H. Thaler, Cass R. Sunstein, et al.Nudge: Improving Decisions About Health, Wealth, and Happiness6,054 Kindle readers highlighted this
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A choice architect has the responsibility for organizing the context in which people make decisions.Richard H. Thaler, Cass R. Sunstein, et al.Nudge: Improving Decisions About Health, Wealth, and Happiness5,337 Kindle readers highlighted thisA choice architect has the responsibility for organizing the context in which people make decisions.Richard H. Thaler, Cass R. Sunstein, et al.Nudge: Improving Decisions About Health, Wealth, and Happiness5,337 Kindle readers highlighted this
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First, never underestimate the power of inertia. Second, that power can be harnessed.Richard H. Thaler, Cass R. Sunstein, et al.Nudge: Improving Decisions About Health, Wealth, and Happiness4,549 Kindle readers highlighted thisFirst, never underestimate the power of inertia. Second, that power can be harnessed.Richard H. Thaler, Cass R. Sunstein, et al.Nudge: Improving Decisions About Health, Wealth, and Happiness4,549 Kindle readers highlighted this
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A nudge, as we will use the term, is any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives.
Richard H. Thaler, Cass R. Sunstein, et al.
Nudge: Improving Decisions About Health, Wealth, and Happiness
6,054 Kindle readers highlighted this
A choice architect has the responsibility for organizing the context in which people make decisions.
Richard H. Thaler, Cass R. Sunstein, et al.
Nudge: Improving Decisions About Health, Wealth, and Happiness
5,337 Kindle readers highlighted this
First, never underestimate the power of inertia. Second, that power can be harnessed.
Richard H. Thaler, Cass R. Sunstein, et al.
Nudge: Improving Decisions About Health, Wealth, and Happiness
4,549 Kindle readers highlighted this
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Nudge: Improving Decisions About Health, Wealth, and Happiness Paperback – Illustrated, February 24, 2009
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Editorial Reviews
Review
One of The Strategist’ s “13 Best Personal Finance Books, According to Money Experts”
“One of the few books . . . that fundamentally changed the way I think about the world.” —Steven D. Levitt, coauthor of Freakonomics
“Engaging and insightful . . . The conceptual argument is powerful, and most of the authors’ suggestions are common sense at its best. . . . For that we should all applaud loudly.” —The New York Times Book Review
“An essential read . . . The book isn’t only humorous, it’s loaded with good ideas that financial-service executives, policy makers, Wall Street mavens, and all savers can use.” —The Boston Globe
“This book is terrific. It will change the way you think, not only about the world around you and some of its bigger problems, but also about yourself.” —Michael Lewis, author of Moneyball and Liar’s Poker
“This gem of a book . . . is a must-read for anyone who wants to see both our minds and our society working better. It will improve your decisions and it will make the world a better place.” —Daniel Kahneman, Nobel Prize–winning author of Thinking, Fast and Slow
“Utterly brilliant . . . Nudge won’t nudge you—it will knock you off your feet.” —Daniel Gilbert, author of Stumbling on Happiness
“Nudge is as important a book as any I’ve read in perhaps twenty years. It is a book that people interested in any aspect of public policy should read. It is a book that people interested in politics should read. It is a book that people interested in ideas about human freedom should read. It is a book that people interested in promoting human welfare should read. If you’re not interested in any of these topics, you can read something else.” —Barry Schwartz, The American Prospect
“Engaging, informative, and thoroughly delightful.” —Don Norman, author of The Design of Everyday Things and The Design of Future Things
“A wonderful book: more fun than any important book has a right to be—and yet it is truly both.” —Roger Lowenstein, author of When Genius Failed
“Save the planet, save yourself. Do-gooders, policymakers, this one’s for you.” —Newsweek
“Great fun to read . . . Sunstein and Thaler are very persuasive.” —Slate
“Nudge helps us understand our weaknesses, and suggests savvy ways to counter them.” —The New York Observer
“Always stimulating . . . An entertaining book that also deeply informs.” —Barron’s
“Entertaining, engaging, and well written . . . Highly recommended.” —Choice
“This Poor Richard’s Almanack for the 21st century . . . shares both the sagacity and the witty and accessible style of its 18th-century predecessor.” —Law and Politics Book Review
“There are superb insights in Nudge.” —Financial Times
“One of the few books . . . that fundamentally changed the way I think about the world.” —Steven D. Levitt, coauthor of Freakonomics
“Engaging and insightful . . . The conceptual argument is powerful, and most of the authors’ suggestions are common sense at its best. . . . For that we should all applaud loudly.” —The New York Times Book Review
“An essential read . . . The book isn’t only humorous, it’s loaded with good ideas that financial-service executives, policy makers, Wall Street mavens, and all savers can use.” —The Boston Globe
“This book is terrific. It will change the way you think, not only about the world around you and some of its bigger problems, but also about yourself.” —Michael Lewis, author of Moneyball and Liar’s Poker
“This gem of a book . . . is a must-read for anyone who wants to see both our minds and our society working better. It will improve your decisions and it will make the world a better place.” —Daniel Kahneman, Nobel Prize–winning author of Thinking, Fast and Slow
“Utterly brilliant . . . Nudge won’t nudge you—it will knock you off your feet.” —Daniel Gilbert, author of Stumbling on Happiness
“Nudge is as important a book as any I’ve read in perhaps twenty years. It is a book that people interested in any aspect of public policy should read. It is a book that people interested in politics should read. It is a book that people interested in ideas about human freedom should read. It is a book that people interested in promoting human welfare should read. If you’re not interested in any of these topics, you can read something else.” —Barry Schwartz, The American Prospect
“Engaging, informative, and thoroughly delightful.” —Don Norman, author of The Design of Everyday Things and The Design of Future Things
“A wonderful book: more fun than any important book has a right to be—and yet it is truly both.” —Roger Lowenstein, author of When Genius Failed
“Save the planet, save yourself. Do-gooders, policymakers, this one’s for you.” —Newsweek
“Great fun to read . . . Sunstein and Thaler are very persuasive.” —Slate
“Nudge helps us understand our weaknesses, and suggests savvy ways to counter them.” —The New York Observer
“Always stimulating . . . An entertaining book that also deeply informs.” —Barron’s
“Entertaining, engaging, and well written . . . Highly recommended.” —Choice
“This Poor Richard’s Almanack for the 21st century . . . shares both the sagacity and the witty and accessible style of its 18th-century predecessor.” —Law and Politics Book Review
“There are superb insights in Nudge.” —Financial Times
About the Author
Richard H. Thaler was awarded the 2017 Nobel Prize in Economics. He is the Charles R. Walgreen Distinguished Service Professor of Behavioral Science and Economics at the University of Chicago’s Booth School of Business, where he is the director of the Center for Decision Research. He is also the co-director (with Robert Shiller) of the Behavioral Economics Project at the National Bureau of Economic Research and in 2015 was the president of the American Economic Association. He has been published in several prominent journals and is the author of a number of books, including Misbehaving: The Making of Behavioral Economics.
Cass R. Sunstein is the Robert Walmsley University Professor at Harvard Law School, where he is the founder and director of the Program on Behavioral Economics and Public Policy. He is by far the most cited law professor in the United States. From 2009 to 2012 he served in the Obama administration as Administrator of the White House Office of Information and Regulatory Affairs. He has testified before congressional committees, appeared on national television and radio shows, been involved in constitution-making and law reform activities in a number of nations, and written many articles and books, including Simpler: The Future of Government, Wiser: Getting Beyond Groupthink to Make Groups Smarter, The World According to Star Wars, and Impeachment: A Citizen's Guide. He is the recipient of the 2018 Holberg Prize, awarded annually to a scholar who has made outstanding contributions to research in the arts, humanities, the social sciences, law, or theology.
Cass R. Sunstein is the Robert Walmsley University Professor at Harvard Law School, where he is the founder and director of the Program on Behavioral Economics and Public Policy. He is by far the most cited law professor in the United States. From 2009 to 2012 he served in the Obama administration as Administrator of the White House Office of Information and Regulatory Affairs. He has testified before congressional committees, appeared on national television and radio shows, been involved in constitution-making and law reform activities in a number of nations, and written many articles and books, including Simpler: The Future of Government, Wiser: Getting Beyond Groupthink to Make Groups Smarter, The World According to Star Wars, and Impeachment: A Citizen's Guide. He is the recipient of the 2018 Holberg Prize, awarded annually to a scholar who has made outstanding contributions to research in the arts, humanities, the social sciences, law, or theology.
Excerpt. © Reprinted by permission. All rights reserved.
Common "Nudges"
- The design of menus gets you to eat (and spend) more. For example, lining up all prices on either side of the menu leads many consumers to simply pick the cheapest item. On the other hand, discretely listing prices at the end of food descriptions lets people read about the appetizing options first…; and then see prices.
- "Flies" in urinals improve, well, aim. When Amsterdam's Schiphol Airport was faced with the not uncommon issue of dirty urinals, they chose a unique solution: by painting "flies" in the (center of) commodes, men obligingly aimed at the insects, reducing spillage by 80 percent.
- Credit card minimum payments affect repayment schedules. Among those who only partially pay off credit card balances each month, the repayment level is correlated with the card's minimum payment — in other words, the lower the minimum payment, the longer it takes a consumer to pay off the card balance.
- Automatic savings programs increase savings rate. All over the country, companies are adopting the Save More Tomorrow program: firms offer employees who are not saving very much the option of joining a program in which their saving rates are automatically increased whenever they get a raise. This plan has more than tripled saving rates in some firms, and is now offered by thousands of employers.
- "Defaults" can improve rates of organ donation. In the United States, about one–third of citizens have signed organ donor cards. Compare this to Austria, where 99 percent of people are potential organ donors. One obvious difference? Americans must explicitly consent to become organ donors (by signing forms, for example) while Austrians must opt out if they do not want to be organ donors.
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Product details
- ASIN : 014311526X
- Publisher : Penguin Books; Revised & Expanded edition (February 24, 2009)
- Language : English
- Paperback : 312 pages
- ISBN-10 : 9780143115267
- ISBN-13 : 978-0143115267
- Item Weight : 10.1 ounces
- Dimensions : 5.4 x 0.8 x 8.44 inches
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- #10 in Sociology of Social Theory
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Reviewed in the United States on February 6, 2018
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Reviewed in the United States on December 27, 2019
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This is about how to manipulate other people’s decisions by making small changes to their lives without those people’s consent. I highly recommend reading if you want to know how people use small-scale manipulations to make inferences about who you are.
23 people found this helpful
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5.0 out of 5 stars
Humans are Predictably Irrational, Thaler shows how to be effective with this as parent, leader, spouse
Reviewed in the United States on December 12, 2017Verified Purchase
No wonder Richard Thaler's work won him the Nöbel Prize in Economics! Built on the earlier work founding Behavioral Economics by Daniel Kahneman and Amos Tvarsky which de-throned the "Rational Actor" model of humans in Classical Economics, Kahneman and Tvarsky, joined by Paul Slovic, showed human thinking is hard-wired in evolution, beset by Heuristics and Biases which are provably non-rational. They answer the question often provoked by observations of others clearly acting against their self-interest. There has been 35 years of continuing research in this area, a Nöbel for Kahneman, even showing that Capuchin monkeys are hard-wired native economic thinkers and choosers. We act, as evolution indicates, for action in the short term, primarily in the lower level, fast thinking brain and with heuristics/algorithms sufficient to meet the test of "Probably Approximately Correct", with book of this name by Leslie Valiant. Humans are not randomly irrational, but predictably irrational, which is what makes The Nudge work effectively.
Thaler gives us an alternative to formal control systems for humans based on rules, laws, behavioral/operant conditioning, "shoulds, oughts, musts". Humans ignore or rebel against the rules, and deny consequences for short term gains.
Thaler's "Nudge" is the alternative, assuming people will act in their self-interest without depending or using rationality or reason. Thaler shows in his reserach and presents in his book how to shape choice using the newly discovered laws of predictable irrationality, or choice shaping.
Thaler gives us an alternative to formal control systems for humans based on rules, laws, behavioral/operant conditioning, "shoulds, oughts, musts". Humans ignore or rebel against the rules, and deny consequences for short term gains.
Thaler's "Nudge" is the alternative, assuming people will act in their self-interest without depending or using rationality or reason. Thaler shows in his reserach and presents in his book how to shape choice using the newly discovered laws of predictable irrationality, or choice shaping.
44 people found this helpful
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Reviewed in the United States on January 22, 2016
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The point is very clear. We all have preconditioned manners of making decisions and instead of having to choose from thousands of options it makes more sense to nudge us to a more common ground than to leave us confused and frustrated. This of course is on condition that there is pure transparency of all the options. If you have ever read any books about psychology or studied the subject or have read Daniel Kahneman’s book Thinking Fast and Slow, than this book will not provide you a lot of new insight. It looks at a lot of old and some recent researches about how people who think they’re making rational decisions are in reality not and have pretty predictable decision patterns. The book then goes on to recommend how society could be better if we followed some type of Paternal Libertarianism where the ones providing choses like Insurance companies or government services nudge persons to make smarter decisions while being transparent of all the options and not hiding any of them. I agree with them almost 100%. Most of their suggestions and examples make sense as long as the ones nudging are 100% transparent. If you’re anything like me, you will say the book is just okay and you will not be blown away by any Wow moments. So you can either read the book or save time and just speak to someone who read the book and have a nice long discussion with them.
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Top reviews from other countries
NinjaReader
1.0 out of 5 stars
Tenta embarcar na onda de freakonomics...
Reviewed in Brazil on May 13, 2018Verified Purchase
Não gostei do livro. Além de considerar que o autor não fez uma boa pesquisa sobre os temas do ponto de vista jurídico, entendo que não está ciente e, portanto, não fala, no livro, as implicações de muitos "nudges" que trata no livro. O autor vê o estágio 1 de suas interferências - nudges - mas não vai além disso. O livro poderia, também, sofrer edição para retirar muito besteirol. Afirmo que os primeiros capítulos são interessantes, porém parece que o gás acaba e tenta-se preencher as páginas de qualquer forma, mesmo em detrimento do prazer proporcionado ao leitor.
Pan
5.0 out of 5 stars
Five Stars
Reviewed in the United Kingdom on February 29, 2016Verified Purchase
Common sense is not so common, but the science of it is in this book.
Bruno Santos Cunha
5.0 out of 5 stars
Nudge!
Reviewed in Brazil on June 17, 2020Verified Purchase
Apesar de relativamente novo (2008), "Nudge" já pode ser considerado um clássico da economia comportamental (behavioral economics), da teoria dos incentivos e da ciência das escolhas. De fato, a simples "presença" de Cass Sunstein (ganhador do Holberg Prize) e Richard Thaler (ganhador do Nobel Prize) como autores já diferencia o livro e, por si, torna a leitura recomendável.
Partindo da ideia de um "paternalismo libertário", Sunstein e Thaler desvendam uma verdadeira arquitetura das escolhas públicas e privadas, de forma a demonstrar como seria possível, a um só tempo, preservar a liberdade de escolha dos indivíduos (caractere libertário) e influenciar a direção das atitudes individuais em um sentido economicamente ótimo (caractere paternalista).
A fim de demonstrar que a suposta incongruência entre libertarianismo e paternalismo pode ser muito menor na prática cotidiana do que na teoria, os autores dissecam exemplos de arquitetura de escolhas nas mais diversas áreas de atuação humana: do incentivo à poupança e aos investimentos a questões saúde pública; do casamento a questões de sustentabilidade ambiental; de previdência à educação pública e privada.
Recheado de exemplos de como pequenos incentivos podem alterar substancialmente as escolhas individuais em direção a níveis ótimos, "Nudge" foge de estereótipos ideológicos pra mostrar uma realidade passível de mudança a partir de critérios racionais facilmente realizáveis. Enfim, um livro muito bom.
Partindo da ideia de um "paternalismo libertário", Sunstein e Thaler desvendam uma verdadeira arquitetura das escolhas públicas e privadas, de forma a demonstrar como seria possível, a um só tempo, preservar a liberdade de escolha dos indivíduos (caractere libertário) e influenciar a direção das atitudes individuais em um sentido economicamente ótimo (caractere paternalista).
A fim de demonstrar que a suposta incongruência entre libertarianismo e paternalismo pode ser muito menor na prática cotidiana do que na teoria, os autores dissecam exemplos de arquitetura de escolhas nas mais diversas áreas de atuação humana: do incentivo à poupança e aos investimentos a questões saúde pública; do casamento a questões de sustentabilidade ambiental; de previdência à educação pública e privada.
Recheado de exemplos de como pequenos incentivos podem alterar substancialmente as escolhas individuais em direção a níveis ótimos, "Nudge" foge de estereótipos ideológicos pra mostrar uma realidade passível de mudança a partir de critérios racionais facilmente realizáveis. Enfim, um livro muito bom.
Giulia
5.0 out of 5 stars
Divertente, illuminante ed adatto a chiunque.
Reviewed in Italy on December 18, 2017Verified Purchase
Comprato per un corso universitario in Public Management. Scritto in modo assolutamente scorrevole ed a tratti anche divertente (i due autori, di cui l'ultimo premio Nobel per l' economia, si alternano, richiamano e prendono a volte in giro tra un aneddoto e l'altro).
Per chi non ha mai sentito parlare dell'argomento "nudge", questo libro ne è una sorta di pietra miliare (anche all'università, corso in Public Policies, ci è stato suggerito da 3 professori diversi per 3 corsi diversi).
Per chi invece già sa di cosa stiamo parlando, potrebbe risultare un po' ridondante e carente di una conclusione particolarmente illuminante rispetto alla letteratura già in circolazione.
Ad ogni modo il mio consiglio per chi sente l'argomento Nudge per la prima volta, per gli entusiasti di approcci innovativi e creativi (lateral thinking) e per i curiosi in generale è "Compratelo!". Assolutamente consigliato in quanto un ottimo investimento per il vostro tempo libero (o meno, nel mio caso).
E' quel tipo di lettura piacevole, su un argomento veramente interessante (ultimamente quasi di moda) capace di lasciarti un valore aggiunto.
N.B. Per chi parla la lingua, consigliata la versione originale rispetto alla traduzione. Per chi non se la sente o non parla inglese, quella in Italiano è comunque un ottimo acquisto!
Se siete al primo approccio e volete saperne di più, o toccare con mano. Vi consiglio di andare a curiosare su YouTube! Troverete una VALANGA di esempi di nudging in tutto il mondo.
[ARGOMENTO, per chi fosse curioso di avere qualche impressione in più rispetto alla trama ufficiale: Il libro introduce al tema della "spinta gentile" (come è stata tradotta in Italia) - sarebbe quella spintarella per farti coraggio o l'incentivo per prendere una decisione.
Il senso è trovare il modo tramite cui indurre le persone ad adottare comportamenti "raccomandabili" in maniera del tutto spontanea, scorrevole (che portino quindi ad un valore aggiunto per loro stessi e per la società in generale). E' ovviamente un approccio "democratico" in quanto lascia sempre libero arbitrio a chiunque ma, cambiando il modo in cui tutte le alternative sono proposte e presentate, aumenta la probabilità che la scelta propenda verso l'alternativa desiderata da "l'ideatore" o dal "public manager" (il concetto sarebbe, come già anticipato, non farlo per fini personali) .
Parte da esempi quotidiani ripresi da tutto il modo (a partire dai risultati ottenuti mettendo una mosca finta dentro molti bagni pubblici maschili) per poi approcciare gradualmente a tematiche più manageriali, quali incentivi nel sistema assicurativo, per i sistemi pensionistici e così via.]
Buona lettura!
Giulia
Per chi non ha mai sentito parlare dell'argomento "nudge", questo libro ne è una sorta di pietra miliare (anche all'università, corso in Public Policies, ci è stato suggerito da 3 professori diversi per 3 corsi diversi).
Per chi invece già sa di cosa stiamo parlando, potrebbe risultare un po' ridondante e carente di una conclusione particolarmente illuminante rispetto alla letteratura già in circolazione.
Ad ogni modo il mio consiglio per chi sente l'argomento Nudge per la prima volta, per gli entusiasti di approcci innovativi e creativi (lateral thinking) e per i curiosi in generale è "Compratelo!". Assolutamente consigliato in quanto un ottimo investimento per il vostro tempo libero (o meno, nel mio caso).
E' quel tipo di lettura piacevole, su un argomento veramente interessante (ultimamente quasi di moda) capace di lasciarti un valore aggiunto.
N.B. Per chi parla la lingua, consigliata la versione originale rispetto alla traduzione. Per chi non se la sente o non parla inglese, quella in Italiano è comunque un ottimo acquisto!
Se siete al primo approccio e volete saperne di più, o toccare con mano. Vi consiglio di andare a curiosare su YouTube! Troverete una VALANGA di esempi di nudging in tutto il mondo.
[ARGOMENTO, per chi fosse curioso di avere qualche impressione in più rispetto alla trama ufficiale: Il libro introduce al tema della "spinta gentile" (come è stata tradotta in Italia) - sarebbe quella spintarella per farti coraggio o l'incentivo per prendere una decisione.
Il senso è trovare il modo tramite cui indurre le persone ad adottare comportamenti "raccomandabili" in maniera del tutto spontanea, scorrevole (che portino quindi ad un valore aggiunto per loro stessi e per la società in generale). E' ovviamente un approccio "democratico" in quanto lascia sempre libero arbitrio a chiunque ma, cambiando il modo in cui tutte le alternative sono proposte e presentate, aumenta la probabilità che la scelta propenda verso l'alternativa desiderata da "l'ideatore" o dal "public manager" (il concetto sarebbe, come già anticipato, non farlo per fini personali) .
Parte da esempi quotidiani ripresi da tutto il modo (a partire dai risultati ottenuti mettendo una mosca finta dentro molti bagni pubblici maschili) per poi approcciare gradualmente a tematiche più manageriali, quali incentivi nel sistema assicurativo, per i sistemi pensionistici e così via.]
Buona lettura!
Giulia
Beginner Youtubertobe
5.0 out of 5 stars
The is the precursor to Daniel Kahneman's book which is also a must read
Reviewed in Canada on April 22, 2020Verified Purchase
As an educator, I seek ways to guide my students better. after reading this book, I can say that it applies not only to governors and policymakers, which have been the majority of what this book aims to tackle, but also any person in the position to make decisions that impacts the wellbeing of others.
It redefines the idea of manipulation so that we, as a society, are aware how inevitable it is in our daily functioning but also how to make better educated and informed decisions, which is then true to our idealistic practice of freedom.
It redefines the idea of manipulation so that we, as a society, are aware how inevitable it is in our daily functioning but also how to make better educated and informed decisions, which is then true to our idealistic practice of freedom.
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