Choiceology's Guide to Nudges

April 25, 2022
Nudges are small but powerful parts of choice architecture.

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Whether it's creating prompts to review and rebalance your portfolio periodically or utilizing stop orders with stock trades to help protect your downside, there are many small nudges that could improve your financial decisions.

  • Check out the Financial Decoder podcast for more insights into how choice architecture and behavioral science can impact your investing decisions.

Whether it's creating prompts to review and rebalance your portfolio periodically or utilizing stop orders with stock trades to help protect your downside, there are many small nudges that could improve your financial decisions.

  • Check out the Financial Decoder podcast for more insights into how choice architecture and behavioral science can impact your investing decisions.

Nudges are all around you. They might help you choose your meal at a restaurant, navigate a busy airport terminal, or start saving for the future. But nudges are often subtle, so you might not notice them until they’re pointed out.

In this episode of Choiceology with Katy Milkman, we're doing things a little differently. This episode is your guide to the many ways nudges have changed the world for the better.

We'll revisit examples of nudges you may recognize from previous episodes of Choiceology. UCLA professor Shlomo Benartzi explains why defaults help more people save for retirement. University of Chicago professor Ayelet Fishbach reminds us how making the best choice a fun one is a great way to encourage better decisions. Harvard professor Todd Rogers discusses how social norms can help people reduce water and energy usage in hotels.

You'll hear a feature interview with Nobel Prize-winning economist Richard Thaler, who along with Harvard law professor Cass Sunstein popularized nudges more than a decade ago in their book Nudge: Improving Decisions About Health, Wealth, and Happiness. And Cass Sunstein himself talks about how simplifying application forms can have an outsized impact on financial aid programs for students.

Richard Thaler is the Charles R. Walgreen Distinguished Service Professor of Behavioral Science and Economics at the University of Chicago's Booth School of Business. He is the author of several books, including Nudge: The Final Edition and Misbehaving: The Making Of Behavioral Economics.

Next, you'll hear from cognitive scientist Maya Shankar about how reading Nudge led her to work in the White House. She served as a senior advisor in the federal government where she founded the White House Social and Behavioral Sciences Team. She's also the creator, host, and executive producer of the award-winning podcast A Slight Change of Plans.

Finally, Katy discusses ways you can incorporate nudges in your own life to help you make better decisions.

Choiceology is an original podcast from Charles Schwab.

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