All You Need Is Nudge (Update)
2/18/202657 min
When Richard Thaler first published Nudge, the world was just starting to believe in his brand of behavioral economics. In this 2021 episode, we ask: How has nudge theory held up in the face of a global financial meltdown, a pandemic, and other existential crises?
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SOURCES:
- Richard Thaler, professor of economics at the University of Chicago.
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RESOURCES:
- Nudge: The Final Edition, by Richard Thaler and Cass Sunstein (2021).
- Sludge: What Stops Us from Getting Things Done and What to Do About It, by Cass Sunstein (2021).
- "Sludge: Americans Spend 11.4 Billion Hours Filling Out Federal Paperwork," by Cass Sunstein (Big Think, 2021).
- "Carbon Taxation in Sweden," by Government Offices of Sweden Ministry of Finance (2021).
- "The Climate Club: How to Fix a Failing Global Effort," by William Nordhaus (Foreign Affairs, 2020).
- "Organ Donation: Presumed Consent and Focusing on What Matters," by Rebecca Brown (The Journal of Medical Ethics Blog, 2017).
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EXTRAS:
- "Sludge," series by Freakonomics Radio (2025).
- “People Aren’t Dumb. The World Is Hard. (Ep. 340 Rebroadcast),” by Freakonomics Radio (2018).
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Clips
Transcript preview
First 90 secondsStephen Dubner· Host0:00
[upbeat music] Hey there, it's Stephen Dubner. One thing I love is going through the Freakonomics Radio archive and resurfacing some of our favorite episodes and some of our favorite people, like Richard Thaler. The episode you're about to hear was first published in twenty twenty-one. We've updated facts and figures as necessary. I hope you enjoy it, and if not, you can blame Thaler. [upbeat music] I know we're talking about Nudge, but I also know that you like what you like, and you don't like what you don't like, and you can be a little... No offense, you can be a little tetchy sometimes.
Richard Thaler· Guest0:40
Touchy? [beep] You called me touchy?
Stephen Dubner· Host0:44
No, no, no, not touchy, tetchy.
Richard Thaler· Guest0:47
What? I don't even know what word you're saying. Sensitive?
Stephen Dubner· Host0:51
[upbeat music] We could go with sensitive, but maybe the best word to describe the man on the other microphone today is cranky, at least situationally cranky. He's pleasant enough most of the time, but in certain circumstances, he becomes a bit of a crankopotamus, especially when something isn't working the way it's supposed to, like when you go to pay your taxes or get a mortgage, and you're suddenly tossed into a quagmire of fine print and red tape. Or think about navigating the healthcare system or managing your retirement savings.
Richard Thaler· Guest1:26
There's so much low-hanging fruit because