Wednesday 16 August 2017

Pilihan trading loss recovery strategies


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Tidak mengecat ulang Algoritma Neural Networks. Prediktor Forex Terfavorit berbasis web otomatis untuk perangkat desktop dan seluler. 260 UNTUK 1 BULAN SUBSCRIPTION 95 akurat. Prakiraan harga, arah pergerakan harga, tren, menghasilkan sinyal buysell. Non-repainting Menghasilkan sinyal perdagangan streaming real-time. Telah menginstal streaming live data feed. Antarmuka berbasis web. Untuk perangkat desktop dan seluler. 260 FOR 1 MONTH SUBSCRIPTION Loss Recovery Trader Robot (EA) 100 secara otomatis akan memperbaiki akun forex Anda dan memulihkan posisi Anda yang hilang, akan membantu Anda mengurangi dan bahkan menghilangkan kerugian Anda. Cukup tempatkan perdagangan Anda, dan Loss Recovery Trader Robot kami akan melakukan sisanya untuk Anda. Pilihan Biner Perdagangan Copier Bridge Salin perdagangan yang menang, opsi biner sinyal antara platform opsi biner. Instan Terpercaya 100 Otomatis Mendukung ukuran lot statis, ukuran lot dinamis, martingale. 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Apakah ini berarti Anda akan memenangkan setiap perdagangan Tidak, tentu saja tidak, tapi dengan pengetahuan yang kami berikan kepada Anda, Anda tidak akan pernah takut untuk melakukan perdagangan berikutnya 8211 karena kemungkinan sekarang akan menguntungkan Anda. Alert 8211 Produk Baru ditetapkan untuk keluar pada awal Juni. Advanced Loss Recovery 8211 ALR diatur untuk bergabung dalam jajaran menghasilkan uang di pasar perdagangan. Situs ini memiliki semua informasi ulasan yang Anda butuhkan. Link Cepat Baca Review Ada saatnya Anda ingin membeli Produk Terbaik di pasaran. Kami ingin memberikan ulasan terbaik tentang produk dan layanan yang dapat Anda andalkan. Read More Temukan Broker Terbaik Jika Anda mencari Broker FX atau Broker Pilihan Biner. Ulasan kami dapat diandalkan dan kami merasa Anda akan senang dengan situs yang tercantum di dalam halaman ini. Read More Sinyal Terbaik Bawa perdagangan Anda ke tingkat berikutnya dengan menggunakan satu penyedia sinyal teratas yang tersedia di pasar yang sulit. Daftar kami selalu berkembang. Read More Berita Pasar Setiap bulan ada sejumlah besar rilis berita untuk Pasar Valuta Asing Ritel Off Exchange (FOREX). Banyak dari peristiwa dan pengumuman ini banyak yang memindahkan pasar. Tapi bagaimana Anda benar memanfaatkan langkah-langkah ini Dapatkan salah dan Anda bisa dihapuskan. Lakukan dengan benar dan Anda bisa berada dalam kelompok elit perdagangan kecil, secara konsisten menarik pips keluar dari pasar setiap minggu. Tujuan Trading kami adalah untuk memberi para pengunjung kami strategi trading terbaik yang tersedia. Kami bekerja secara eksklusif dengan broker yang mengkhususkan diri dalam perdagangan berita, dan juga menyertakan ulasan ekstensif mengenai bisnis terbaik. Informasi yang relevan dan bermanfaat terkait dengan perdagangan berita dapat ditemukan di situs ini. 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Berita Forex TerbaruBusinessballs telah bermitra dengan Accipio mdash Institute of Leadership and Management (ILM) dan Chartered Management Institute (CMI) center mdash untuk menawarkan modul eLearning interaktif visual-visual yang sesuai dengan kualifikasi yang diakui secara internasional (ILM atau CMI). Dapatkan poin belajar untuk setiap kepemimpinan dan manajemen eModule, dan dapatkan Level 3 Award, Certificate atau Diploma setelah Anda mendaftar ke lembaga pemberi penghargaan (melalui Accipio), mendapatkan cukup banyak poin pembelajaran dan lulus tugas. Biaya akreditasi berlaku. Klik di sini untuk mengakses eLeadership Academy. Teori dorongan teori hudge summary. Heuristik penjelasan Sejarah dorongan Ekstensi dan koneksi ke motivasi, manajemen perubahan dan kepemimpinan, dan glosarium dorongan. Teori dorongan adalah konsep fleksibel dan modern untuk: memahami bagaimana orang berpikir. membuat keputusan . Dan berperilaku, membantu orang memperbaiki pemikiran dan keputusan mereka, mengelola perubahan dari segala jenis, dan mengidentifikasi dan memodifikasi pengaruh tidak berguna yang ada pada orang-orang. Teori Nudge dinamai dan dipopulerkan oleh buku tahun 2008, Nudge: Memperbaiki Keputusan Mengenai Kesehatan, Kekayaan, dan Kebahagiaan, yang ditulis oleh akademisi Amerika Richard H Thaler dan Cass R Sunstein. Buku ini didasarkan pada karya pemenang Nobel Perdamaian psikolog Israel-Amerika Daniel Kahneman dan Amos Tversky. Review dan menjelaskan konsep Thaler dan Sunsteins Nudge. Terutama heuristik (kecenderungan manusia untuk berpikir dan memutuskan secara naluriah dan sering keliru) menghubungkan metode Nudge dengan teori dan model lain, dan pada karya Kahneman dan Tverskys mendefinisikan dan menjelaskan metode tambahan untuk menyenggol orang dan kelompok memperluas apresiasi dan penerapan metodologi Nudge ke yang lebih luas. Manajemen perubahan, motivasi, kepemimpinan, pembinaan, konseling, pola asuh, dll menawarkan metode Nudge dan konsep terkait sebagai tolok ukur teori Nudge sehingga konsep dapat diajarkan dan diterapkan dalam berbagai situasi yang melibatkan hubungan dengan orang, dan memungkinkan orang untuk Memperbaiki pemikiran dan pengambilan keputusan mereka dan menawarkan daftar istilah teori Nudge dan istilah terkait Teori dorongan awalnya diajukan dalam ekonomi perilaku AS, namun dapat disesuaikan dan diterapkan lebih luas untuk memungkinkan dan mendorong perubahan pada orang, kelompok, atau diri Anda sendiri. Teori nudge juga dapat digunakan untuk mengeksplorasi, memahami, dan menjelaskan pengaruh yang ada pada bagaimana orang berperilaku, terutama pengaruh yang tidak membantu, dengan maksud untuk menghapus atau mengubahnya. Ada banyak gangguan yang tidak membantu di mana-mana - terutama dalam periklanan dan pemerintahan yang tidak disengaja, banyak yang sangat disengaja. Catatan: Artikel ini bukan reproduksi atau ekstraksi kerja Thaler dan Sunsteins - ini adalah ringkasan, interpretasi dan penyuluhan teori Nudge, termasuk terminologi utama, diperluas dengan metode pelengkap, dengan penjelasan, contoh dan hubungan yang bermanfaat, dengan gagasan dan konsep terkait. Motivasi dan manajemen. Oleh karena itu, jika Anda berusaha memahami Thaler dan Sunsteins bekerja langsung, atau untuk meneliti dan mengekstrak bahan sumber asli Thaler-Sunstein, Anda harus mendapatkan buku mereka Nudge, dan juga mengeksplorasi karya Kahneman dan Tverskys sebelumnya. Jika Anda mengambil kutipan dari artikel ini, mohon klarifikasi dalam kutipan bahwa kutipan diambil dari artikel articlewebpage ini, (oleh karena itu merupakan sumber sekunder dalam hal teori Thaler, Sunstein, Kahneman dan Tversky). Seperti ulasan apapun, artikel ini terbuka untuk diperdebatkan mengenai bagaimana tepatnya hal tersebut menafsirkan dan mewakili karya asli (Thaler-SunsteinKahneman-Tversky), dan ini terutama terjadi karena sifat adaptif dan perkembangan dari artikel ini. Teori indeks - dorongan 4. Sejarah dan asal mula teori Nudge - Thaler, Sunstein, Kahneman, Tversky - heuristik - apa yang ada dalam buku ini 5. Teori dorongan - prinsip, terminologi, nudges Thaler-Sunstein 5.1 Filosofi penyimpangan - paternalisme libertarian 5.2 Teori nudge Manajerleader - arsitek pilihan 5.3 Bagaimana orang berpikir dan memutuskan 5.3.1 Ikhtisar heuristik 5.4 Bagaimana orang benar-benar berpikir vs bagaimana pembuat kebijakan memikirkan orang-orang yang berpikiran dini - manusia dan ekon 5.5 Sistem berpikir vs Berpikir Otomatis 5.6 Pengenalan heuristik - pemikiran manusia dan kecenderungan yang menentukan - heuristik dorongan 5.7 Thaler-Sunstein Heuristik - secara rinci - (jenis jenis dorongan yang berbeda) .1 Penangkaran dan Penyesuaian (membandingkan kemudian menebak) .2 Ketersediaan (perceived popularityrarity) .3 Keterwakilan (stereotip dan perbandingan) .4 Keyakinan optimisme (underover - Estimasi atau kepuasan) .5 Kehilangan keengganan (berpegang pada thingsresistance) status quo bias (inersia). 6 Status quo bias (inersia, default ke n O Tindakan). Framing (orientasi, aksentuasi, presentasi, gaya) .8 Godaan (keserakahan, ego, penghargaan jangka pendek) .9 Ketidakberdayaan (kelalaian, penghindaran, tidak berkonsentrasi) .10 Strategi pengendalian diri (kebiasaan dan rutinitas untuk Kelemahan yang berlawanan) .11 Mengikuti kawanan (sesuai, naluri massa, keamanan dalam jumlah) .12 Efek sorotan (kecemasan, tekanan, quot. Setiap orang menonton keputusan saya, takut membuat kesalahan) .13 Priming - (cara orang dapat dibuat siap atau siap sebelum berpikir dan memutuskan, misalnya visualisasi, pemodelan peran, kepercayaan bangunan, metode penawaran tidak hanya arahan) .14 Kompatibilitas respons stimulus - lapisan heuristik dan dorongan lainnya - (desain signage, bahasa, sehingga terlihat dan sesuai untuk pesan yang disampaikannya) .15 Umpan balik - lapisan heuristik dan dorongan lainnya - (diberikan kepada responden selama dan setelah keputusan pemikiran, memungkinkan penyesuaian dan Pengalaman berguna) 8. Mengembangkan, mengadaptasi dan menggunakan teori Nudge - jenis dorongan lainnya - contoh dan korelasi dengan teori dan disiplin lain 10. Glosarium istilah - Teori dorongan dan konsep terkait 1. Pengantar teori dorongan Teori nudge dikreditkan terutama kepada orang Amerika. Akademisi Richard H Thaler dan Cass R Sunstein. Mereka membangun sebagian besar teori mereka tentang karya heuristik psikolog Israel-Amerika Daniel Kahneman dan Amos Tversky, yang pertama kali muncul pada tahun 1970-an di jurnal psikologis. Nama dan konsep teori Nudge atau Nudge dipopulerkan oleh buku tahun 2008, Nudge: Memperbaiki Keputusan Mengenai Kesehatan, Kekayaan, dan Kebahagiaan, yang menjadi best seller internasional. Buku Kahnemans 2012, juga best seller, Thinking, Fast and Slow mengandung banyak teori Khaneman-Tversky mendasar yang mendasari konsep Thaler-Sunstein Nudge. Amos Tversky agak terbengkalai dalam kutipan teori Nudge karena dia meninggal pada tahun 1996. Teori dorongan berusaha untuk meningkatkan pemahaman dan pengelolaan pengaruh heuristik terhadap perilaku manusia (ejaan AS adalah perilaku), yang penting bagi perubahan orang. Inti perilaku, adalah pengambilan keputusan, dari pilihan yang ada. Teori nudge terutama berkaitan dengan disain pilihan. Yang mempengaruhi keputusan yang kita buat. Teori dorongan menunjukkan bahwa perancangan pilihan harus didasarkan pada bagaimana orang benar-benar berpikir dan memutuskan (secara naluriah dan agak tidak rasional), daripada bagaimana pemimpin dan penguasa secara tradisional (dan biasanya secara tidak benar) percaya bahwa orang berpikir dan memutuskan (secara logis dan rasional). Dalam hal ini, antara lain teori Nudge adalah pendekatan yang berbeda secara radikal dan lebih canggih untuk mencapai perubahan pada orang daripada metode pengajaran langsung, penegakan hukum, hukuman, dll. Penggunaan teori Nudge didasarkan pada dorongan dan pemberdayaan tidak langsung. Ini menghindari instruksi langsung atau penegakan hukum. Berikut adalah beberapa contoh sederhana untuk menggambarkan perbedaan antara teknik tradisional dan teknik Nudge: Pengeluaran toko makanan mingguan. Gunakan keranjang bukan troli. Teori Nudge menerima bahwa orang memiliki sikap, pengetahuan, kemampuan, dan kemampuan tertentu dan memungkinkan faktor-faktor ini (sedangkan metode otokratis mengabaikannya). Teori Nudge didasarkan pada pemahaman dan memungkinkan realitas situasi dan kecenderungan manusia (tidak seperti pengajaran paksa tradisional, yang sering mengabaikan atau mengurangi kenyataan situasi dan orang-orang). Pada dasarnya (dan benar, sesuai dengan asal usulnya) teori Nudge beroperasi dengan merancang pilihan bagi orang-orang yang mendorong keputusan positif yang bermanfaat bagi orang-orang yang memilih, dan idealnya untuk kepentingan masyarakat dan lingkungan yang lebih luas, dan lain-lain. Selain itu, teori Nudge menawarkan metodologi yang bagus untuk Mengidentifikasi, menganalisis dan membentuk kembali pilihan dan pengaruh yang ada sehingga orang diberikan oleh pemerintah, perusahaan, dan otoritas lainnya. Mengingat begitu banyak pilihan dan pengaruh ini sangat tidak membantu orang, ini adalah area utama kesempatan untuk pengembangan dan penggunaan teori Nudge, meskipun tidak dipertimbangkan oleh penciptanya. Teori nudge juga menarik dari dan menghubungkan banyak model motivasi dan manajemen lainnya, misalnya: Teori dorongan mencoba meminimalkan hambatan dan konfrontasi. Yang biasanya timbul dari metode mengarahkan dan otokratis yang lebih kuat untuk mengubah peoplebehaviour. Perhatikan perbedaannya: Memaksa metode drastis, langsung, dan membutuhkan upaya sadar yang ditentukan (oleh orang yang sedang berubah). Metode penyengkaran lebih mudah dilakukan orang untuk dibayangkan, dan kurang mengancam dan mengganggu untuk benar-benar melakukannya. Metode pemaksaan bersifat konfrontatif dan bertanggung jawab untuk memprovokasi perlawanan. Metode nudge tidak langsung, taktis, dan kurang konfrontatif - metode penyimpangan mungkin kooperatif dan menyenangkan. Secara signifikan, dan mudah diabaikan, teori Nudge juga dapat digunakan untuk mengidentifikasi, menjelaskan, dan memodifikasi efek heuristik yang ada pada orang dan kelompok masyarakat - terutama di mana efek ini tidak membantu atau merusak masyarakat. 2. Ikhtisar teori dorongan Teori nudge awalnya muncul di awal tahun 2000an di Amerika Serikat sebagai pendekatan radikal untuk mempengaruhi interaksi masyarakat dengan sistem keuangan, terutama pensiun, tabungan dan perawatan kesehatan - sehingga dapat meningkatkan kualitas kehidupan di kemudian hari, (bukan untuk memperkaya perusahaan keuangan). Poin terakhir ini penting - Nudge awalnya dikembangkan sebagai konsep etis. Oleh akademisi, untuk perbaikan masyarakat. Bukan sebagai mekanisme eksploitasi komersial, atau manipulasi pemerintah. Dari permulaan ini, konsep Nudge sekarang menawarkan implikasi dan aplikasi yang jauh lebih besar. Prinsip dan teknik penyesalan sekarang semakin penting dalam komunikasi, pemasaran, dan motivasi kelompok: dalam bisnis, pemasaran, penjualan, kepemimpinan organisasi, politik, ekonomi, pendidikan, kesejahteraan benar-benar dalam situasi dimana seseorang atau beberapa jenis berusaha Mempengaruhi seseorang atau sekelompok orang, misalnya kelompok pelanggan, atau seluruh masyarakat - atau hanya diri Anda sendiri, sebagai bantuan untuk meningkatkan kesehatan, kekayaan dan kesejahteraan pribadi. Teori nudge misalnya bisa membantu pengasuhan anak atau ekstrem lainnya bisa membantu pemerintahan dunia mengelola populasi global. Nudge telah secara dramatis mempengaruhi pemikiran dan metode untuk memotivasi dan mengubah orang. Teori dorongan mendukung perubahan dalam kelompok melalui metode tidak langsung, bukan dengan penegakan atau instruksi langsung. Inti konsep Nudge adalah bahwa orang dapat dibantu untuk: berpikir dengan tepat. Dan membuat keputusan yang lebih baik dengan memilih pilihan yang telah dirancang untuk memungkinkan hasil ini. Berikut adalah tabel sederhana yang menunjukkan penandaan yang bervariasi, dan perbedaan antara, perubahan yang diarahkan secara tradisional dan intervensi berorientasi Nudge, dalam hal kata kunci dan gagasan taktis. Ketiadaan keterbukaan, tidak ada yang ditahan Akar teori Nudge dapat ditelusuri kembali ke berbagai model psikologis dan konsep filosofis, terutama teori pemikiran dan pengambilan keputusan Kahneman, Tversky dan lain-lain. Dari sudut pandang filosofis dan motivasional, Abraham Maslow memahami dan mengartikulasikan etos dan prinsip teori Nudge di tahun 1950an dan 60an, setengah abad sebelum diberi nama. Model Hirarki Kebutuhan Maskot adalah kecenderungan heuristik paling mendasar dalam pemikiran manusia dan pengambilan keputusan. Model perubahan hidup Erik Eriksons memiliki arti yang sama, walaupun Maslow atau Erikson menggunakan heuristik dalam menggambarkan konsep mereka. Teori nudge juga berkorelasi kuat dengan, andor menarik dari, teori positif lainnya yang menyertai perbaikan situasi masyarakat, seperti: Mungkin bukti awal yang paling meyakinkan bahwa teori Nudge telah menjadi konsep yang sangat penting untuk mengelola perubahan, orang, dan masyarakat, adalah bahwa Pemerintah - terutama AS dan Inggris - dengan sangat cepat mengembangkan departemen Nudge khusus untuk menggunakan metode Nudge dalam membantu mengubah perilaku masyarakat dalam skala yang sangat besar. Efektivitas metode tersebut sedemikian rupa sehingga Unit Nudge pemerintah Inggris (secara resmi disebut Tim Wawasan Perilaku) diprivatisasi pada tahun 2013 (sangat sedikit yang memiliki potensi sangat besar dipertahankan oleh negara Inggris di zaman modern ..), dengan pengumuman resmi: Karena Tim Wawasan Perilaku diciptakan pada tahun 2010, ada banyak minat media dalam kerja tim. Seringkali merujuk pada tim sebagai Unit Nudge (setelah karya Profesor Richard Thaler, rekan penulis Nudge dan penasihat akademis tim), sebagian besar kepentingan media berfokus pada pengaruh tim ini di Whitehall dan di luar negeri dan Metode dan wawasan yang telah diterapkan tim terhadap kebijakan publik. Kutipan ini diambil dari situs web Wawasan Perilaku Pemerintah Inggris, Mar 2014. Masih harus dilihat apakah Unit Nudge tertentu ini dapat mempertahankan filosofi yang dianjurkan oleh pembuat Nudges. Thaler, Sunstein, Kahneman dan Tversky. Mungkin tidak, karena perusahaan yang diprivatisasi menjual jasanya ke dunia usaha dan pemerintah lainnya, dan mau tidak mau berusaha memaksimalkan keuntungan bagi para investornya. Pada titik mana, penting untuk dicatat bahwa setiap orang dapat menggunakan teori Nudge (lihat Siapapun dapat menggunakan teori Nudge). Sederhana dan mudah jika Anda membaca sedikit tentang hal itu untuk memahami cara kerjanya. 3. Definisi teori dorongan Teori Definisi kamus (OED - Oxford English Dictionary) dari kata dorongan dalam pengertian tradisionalnya sangat membantu dalam menghargai pendekatan Thaler dan Sunsteins terhadap konsep Nudge: quotProd (seseorang) dengan lembut dengan siku untuk menarik perhatian..quot quotTouch atau dorong (sesuatu) dengan lembut atau bertahap. quot quotCoax atau dorong dengan lembut (seseorang) untuk melakukan sesuatu. quot quotA sentuhan ringan atau push. quot (Kamus Inggris Oxford) Kebetulan asal kata dorongan tidak pasti. Ini membandingkan dengan nugga Norwegia dan nyggja, untuk mendorong atau menggosok, yang menunjukkan bahwa kata tersebut mungkin mengandung bahasa Norse atau Viking dalam bahasa Inggris. Thaler dan Sunstein sebenarnya tidak memberikan definisi spesifik teori Nudge dalam buku mereka, walaupun definisi dorongan diberikan dalam buku ini dan dikutip oleh Wikipedia (2014): quot. Dorongan, karena kita akan menggunakan istilah ini, apakah ada aspek arsitektur pilihan yang mengubah perilaku masyarakat dengan cara yang dapat diprediksi tanpa melarang opsi atau mengubah insentif ekonomi secara signifikan. Untuk menghitung sebagai dorongan belaka, intervensi harus mudah dan murah untuk dihindari. Nudges bukan mandat. Menempatkan buah pada tingkat mata dianggap sebagai dorongan. Melarang junk food tidak. Quot (Ini adalah paragraf kedua dari bab pendahuluan dalam buku Thaler dan Sunsteins Nudge, dan mengacu pada skenario pembukaan buku untuk merancang pilihan dalam antrian kafetaria. Hal yang paling dekat dengan definisi Nudge oleh penulis yang muncul dalam buku ini. .) Heres Wikipedias sendiri mendefinisikan teori Nudge: Teori Nudge (atau Nudge) adalah konsep dalam ilmu perilaku, teori politik dan ekonomi, yang berpendapat bahwa penguatan positif dan saran tidak langsung (untuk mencoba mencapai pemaksaan yang tidak dipaksakan) dapat mempengaruhi motif , Insentif dan pengambilan keputusan kelompok dan individu sama, setidaknya seefektif - jika tidak lebih efektif - daripada instruksi langsung, legislasi, atau penegakan hukum. (Wikipedia, 2013-2014) Berikut adalah definisi lebih lanjut (Businessballs 2014) yang mencerminkan pandangan perluasan (penggunaan potensial yang lebih luas) teori Nudge. Pandangan luas tentang penggunaan potensial teori Nudge (yang ditawarkan oleh artikel ini) adalah bahwa: Teori dorongan dapat diterapkan jauh lebih luas daripada ekonomi perilaku. Teori dorongan dapat diterapkan pada hampir semua jenis hubungan manusia di mana perubahan pemikiran dan pengambilan keputusan masyarakat dapat bermanfaat bagi orang-orang itu, dan masyarakat luas dan planet secara keseluruhan. Teori Nudge juga menawarkan dasar untuk mengidentifikasi dan menilai banyak dan berbagai pengaruh yang ada pada pemikiran dan pengambilan keputusan masyarakat - baik sengaja atau sengaja dirancang - terutama pengaruh yang menghasilkan pemikiran dan keputusan yang tidak membantu bagi masyarakat yang peduli dan masyarakat luas dan planet ini. Aplikasi yang lebih luas ini mengundang definisi teori Nudge yang lebih luas: teori kutipan, dinamai dan dijelaskan dalam buku Thaler dan Sunsteins 2008 Nudge - Memperbaiki keputusan tentang kesehatan, kekayaan dan kebahagiaan, adalah pendekatan untuk memahami dan mengubah perilaku masyarakat, dengan menganalisis, memperbaiki, merancang , Dan menawarkan pilihan bebas untuk orang-orang, sehingga keputusan mereka lebih mungkin menghasilkan hasil yang bermanfaat bagi orang dan masyarakat pada umumnya. Dan ini terutama harus dibandingkan dengan hasil yang biasanya timbul dari perubahan tradisional yang ditegakkan atau diarahkan, dan dibandingkan dengan pengaruh tidak langsung yang tidak disengaja atau tidak disengaja. Teori nudge pada awalnya direncanakan untuk diterapkan terutama ke bidang ekonomi dan kesehatan, terutama yang dikelola oleh pemerintah negara bagian dan lokal, namun konsep Nudge sebenarnya jauh lebih banyak diterapkan, pada kebanyakan pengambilan keputusan manusia, dan cara-cara manusia - Pengambilan keputusan bisa dibantu. Perhatikan bahwa teori Nudge juga dapat digunakan untuk mengidentifikasi dan memodifikasi atau menghapus hasrat yang tidak membantu yang ada. quot (A Chapman, Businessballs 2014) Dan yang lebih pendek: teori kutipan memungkinkan analisis, perbaikan dan disain atau disain ulang pengaruh pada pemikiran dan pemikiran masyarakat. Pengambilan keputusan Menurut bagaimana orang benar-benar mengambil keputusan (secara naluriah), daripada menurut bagaimana para pemimpin dan pembuat kebijakan cenderung berpikir bahwa orang membuat keputusan (logis dan patuh, seperti robot), memperluas penggunaan sistem pemikiran ini dengan tepat dalam situasi tertentu. Quot (A Chapman, Businessballs 2014) Saya selalu terbuka terhadap saran definisi yang lebih baik, dan mengingat teori Nudge cukup baru dan masih terus berkembang, saya yakin beberapa akan muncul. Teori Nudge - sejarah dan asal usul - Thaler, Sunstein, Kahneman, teori Tversky Nudge dinamai, didefinisikan (sebagai teori Nudge) dan dipopulerkan dalam buku tahun 2008, Nudge: Memperbaiki Keputusan mengenai Kesehatan, Kekayaan, dan Kebahagiaan, yang ditulis oleh akademisi Amerika Richard H Thaler dan Cass R Sunstein. Perkembangan teori Nudge - terutama prinsipnya - dikaitkan dengan penulis buku dengan benar dengan Daniel Kahneman, kolaborator signifikan Thaler, seorang psikolog prizewinning yang berprestasi secara global dengan spesialisasi dalam heuristik dan pemikiran, dan Kahnemans memiliki kolaborator lama, Israel - Psikolog Amerika Serikat Amos Tversky. Tversky meninggal pada tahun 1996, sayangnya sebelum hadiah Nobel ekonomi diberikan pada tahun 2002 untuk karyanya dengan Kahneman, dan ini tampaknya telah mengurangi pengakuan populer atas kontribusi Tverskys terhadap teori Nudge. Richard H Thaler - lahir tahun 1945 - ekonom akademis AS, penulis, Profesor Ilmu Perilaku dan Ekonomi di University of Chicago Booth School of Business. Cass Robert Sunstein - lahir 1954 - akademisi hukum ekonomi AS dengan minat tambahan pada ekonomi perilaku, mengajar selama 27 tahun di University of Chicago Law School, bertugas di Kantor Informasi Urusan dan Urusan Hukum Gedung Putih dalam pemerintahan Obama, yang terakhir adalah Universitas Robert Walmsley Profesor dan Felix Frankfurter Profesor Hukum di Harvard Law School. Daniel Kahneman - lahir tahun 1934 - pemenang psikolog Israel-Amerika dari Hadiah Nobel Perdamaian 2002 dalam Ilmu Ekonomi. Spesialis dalam psikologi penilaian dan pengambilan keputusan, ekonomi perilaku dan psikologi hedonis (peduli dengan kebahagiaan dan kesejahteraan manusiawi). Co-developer dengan teori Amos Tversky dari Prospect. Pada tahun 2014 Daniel Kahneman adalah Profesor Psikologi Eugene Higgins dari Universitas Princeton, dan Profesor Emeritus Urusan Psikologi di Princetons Woodrow Wilson School of Public and International Affairs. Amos Nathan Tversky - (1937-1996) - psikolog Israel dan kolaborator Daniel Kahneman dalam studi ekonomi perilaku, heuristik, pengambilan keputusan. Co-developer dengan Daniel Kahneman dari teori Prospect. Dengan senang hati, sebagai bukti kecemerlangan Tverskys yang luar biasa, dikatakan bahwa rekan akademis menyarankan sebuah Uji Kecerdasan Tversky dimana lebih cepat Anda menyadari bahwa Tversky lebih pintar dari Anda, semakin pintar Anda. Dalam buku Nudge, Thaler dan Sunstein sangat tertarik pada yang sebelumnya. Heuristik karya Kahneman dan Tversky, yang pertama kali muncul pada 1970-an di koran universitas dan jurnal psikologis. Buku Kahnemans 2012, yang juga best seller, Thinking, Fast and Slow, mengandung banyak teori fundamental yang mendasari konsep Thaler-Sunstein Nudge. Secara signifikan Kahneman mendedikasikan buku ini untuk mengenang Amos Tversky. Pada tahun 1979, Daniel Kahneman menghasilkan makalah yang signifikan dengan kolaborator lamanya, Amos Nathan Tversky Israel (1937-96): Teori Prospek: Analisis Keputusan di bawah Risiko (Daniel Kahneman dan Amos Tversky Econometrica, 472, hlm. 263-291 , Maret 1979.) Teori Prospek Kahneman dan Tverskys, dan makalah yang menggambarkannya, menjadi sumbangan penting bagi pemahaman pemikiran manusia dan pengambilan keputusan, terutama dalam ekonomi perilaku. Dengan demikian, teori Prospek, bersama dengan karya heuristik lainnya dari Kahneman dan Tversky, membentuk bagian penting dari perkembangan teori Thaler-Sunstein Nudge. Teori Prospek didefinisikan (Wikipedia 2014) sebagai berikut: Teori quotProspect adalah teori ekonomi perilaku yang menggambarkan cara orang memilih antara alternatif probabilistik yang melibatkan risiko, di mana probabilitas hasil diketahui. Teori tersebut menyatakan bahwa orang membuat keputusan berdasarkan nilai potensi kerugian dan keuntungan daripada hasil akhir, dan orang mengevaluasi kerugian dan keuntungan ini dengan menggunakan heuristik tertentu. Modelnya deskriptif: ia mencoba memodelkan pilihan kehidupan nyata, bukan keputusan yang optimal. Teori ini dikembangkan oleh Daniel Kahneman dan Amos Tversky pada tahun 1979 sebagai deskripsi pengambilan keputusan yang secara psikologis lebih akurat, dibandingkan dengan teori utilitas yang diharapkan. Dalam rumusan aslinya istilah prospek disebut lotre. (Expected utility theory refers to Expected utility hypothesis earlier called moral expectation, which is an early explanation of instinctive decision-making contrasted with mathematical expectation or logical decision-making, in economics, gambling, strategygame theory, which can be traced to origins in the 1730s.) Thaler and Sunsteins original Nudge theory is chiefly concerned with behavioral economics and behavioral finance (UK-English: behavioural), being the primary interests of the books authors. Kahneman and Tverskys expertise, by contrast, is psychology with a broader approach to decision-making, so it is interesting (and a lesson in nudging) that Thaler and Sunsteins more narrow economics angle succeeded in bringing the ideas of Nudge - and heuristics especially - into the mainstream. This is perhaps due to the highly accessible Nudge branding and packaging, together with a good marketing approach. People respond well to strongly promoted, accessibly-packaged concepts with catchy names, which equates to a series of nudges (arguably one of framing. and then following the herd when the book became a best-seller - during which promotional accessibility is a major factor too). Thaler and Sunsteins focus (behavioral economics and behavioral finance) more specifically entailed the interaction between American citizens and US financial systems involving savings, pensions, debtcredit, and healthcare provision . Examples and references in other areas of behaviour and decision-making were offered in the book, but not to a great extent, and certainly not to the depth that the potential application of Nudge was explored and proposed in the financial and healthcare fields mentioned. The book Nudge is effectively in two quite different halves (although not indexed as such): 1. The first half offers very clear and entertaining explanation, supported by research and survey statistics, etc. of human decision-making, which the authors contend to be generally illogical, weak, harmful, and often self-destructive. Most of this explanation is underpinned by previous studies and scientific theory concerning heuristics . which in the authors context of human decision-making refers to the tendency for humans to think instinctively, emotionally, and subjectively, rather than logically, rationally and objectively. The authors list several types of heuristic tendencies in people, which equate to Nudges, on the basis that heuristics are fundamental drivers of decisions. 2. The second half of the book analyses various theorized and potential effects of heuristics in the US sectors of: consumersocietal finance (pensions, savingsinvesting, creditborrowing, and social security) healthcare (prescription drugs, organ donations) the environment (carbon tax) and marriage (the notion that it should be separated from the state) As such basically the books first part offers the Nudge principles (rather like a toolkit), whereas the second part describes and offers Nudge solutions to challenges in the US economysociety . The Nudge book is immensely appealing to non-technical audiences who are interested in the technical aspects of individualgroup thinking and decision-making. Seen from another angle this is central to change management . motivation, and managing people, potentially on a vast scale. The book is particularly interesting (from a general decision-making perspective) in its first half, in which heuristics, and the ways that people think and decide, are explained in an entertaining and accessible way. (The second half of the book focuses on American socio-economics, which by implication is more specialized and narrowly appealing.) The authors did not devise or discover all of the various heuristic tendencies they present, but they have very cleverly brought them together into a cohesive, comprehensible and useable set of principles, and this is arguably the most valuable aspect of the book (aside from bringing a helpful concept to a very big audience). We could conceivedevelop the main heuristic Nudge principles as a sort of toolkit of ideasmethods, by which peoples thinking and decision-making can be altered. Such a toolkit, together with Thaler and Sunsteins explanatory theory and philosophy, reminds all policy-makers, managers and communicators that people rarely think very rationally, and this is the essence of what is now called Nudge theory. Nudge theory began to evolve from the moment the book was released. The flexibility and adaptability of Nudge theory is a big part of its appeal to leaders everywhere. During the 2010s Nudge theory was still evolving and expanding in terms of its techniques, definition, and (significantly) its applications. 5. Nudge theory - main elements, principles, terminology Here are the original main technical and structural aspects of Nudge theory, defined by Thaler and Sunstein, in their 2008 book, Nudge: Improving Decisions About Health, Wealth, and Happiness. Nudge theory has evolved significantly since these founding principles were established, and it will continue to grow considerably in future years. Here are Thaler and Sunsteins founding Nudge theory principles and terminology. Please note again that much of the heuristics theory described here is based on the work of Daniel Kahneman and Amos Tversky. 5.1 Nudge theory - philosophy Nudge theory is a clever and potent concept, but like any clever concept it can be abused. Having an ethical philosophy helps to encourage a responsible approach to using Nudge theory. A guiding philosophy is certainly required for corporations and governmental authorities, which in modern times routinely exploit peoples heuristic weaknesses. Thaler and Sunstein use the term libertarian paternalism as a name for the underpinning philosophy that they advocate when considering and applying Nudge theory, and particularly the guiding ethos of leaders and managers who employ Nudge theory methods. As such, libertarian paternalism is the authors preferred term for the guiding ethos and values of Nudge theory the ethical and philosophical basis governing its use, and by implication its development. Thaler and Sunstein advocate the use of Nudge for the good of human society and the world we live in. They acknowledge that Nudge theory unavoidably entails a degree paternalism, as arguably all leadership does. But Thaler and Sunstein also emphasize the need for Nudge methods to be guided by a need to protect peoples freedom of choice to have compassion for people and society, and to care for the environment and future of the planet. Thaler and Sunstein reinforced their emphasis on free choice as follows: quot. when we use the term libertarian to modify the word paternalism, we simply mean liberty-preserving. quot This is important, because Nudge is a powerful concept. It was not designed to be used for unethical purposes, or to pursue aims which exploit people, or which do harm. Nudge theory was designed to help society, not to enrich the already powerful and wealthy. Paternalism refers to any leaderships responsibility for people and planet. Libertarian refers to the freedom that people should have in making their own choices, and the need to protect free will. Thaler and Sunstein said of Nudge theorys underpinning philosophy, in emphasizing the need to preserve free choice: quot. Nudges are not mandates. Putting the fruit at eye-level counts as a nudge. Banning junk food does not. quot Here is an additional philosophical note about respectful relationships, cooperation, amenability . specifically how followers feel about the leadershipauthority that is applying the change nudge. This is a further important additional philosophical aspect of Nudge theory. It is implied by and within Nudge theory but not featured in Thaler and Sunsteins book. It concerns the relationship between leader and group (or other authority and audience), and is the vital consideration that: In very many relationships between a leadermanagerauthority and the peoplegroupsfollowers etc. whose change is sought, people are influenced (consciously or unconsciously) by their feelings towards the leaderauthority (choice architect) or whateverwhomever is perceived to be the nudger. Basically people are more amenable (open and cooperative) to being nudged if they have positive feelings towards (whomeverwhatever is perceived to be) the nudger, than if these feelings are negative (fearful, distrustful, distasteful, etc). Later in this article (see the LikeabilityCredibilityTrust influence below) you will see that this unofficial and unspoken philosophical aspect of Nudge theory can be a major reason for difficulties in applying Nudge theory successfully - and if we consider how people usually regard politicians, governments, corporations then it is easy to imagine that this factor can be hugely influential on peoples reactions to nudges. Given that Nudge theory logically operates better where people have generally positive rather than negative feelings towards the nudging authority, it follows that we must consider the factors that generate these feelings and define the relationships between authority and people. Nudge theory philosophy can therefore be extended beyond libertarian paternalism, to acknowledge and include anything which determines how people feel about the nudging authority . This varies according to situations, and to different degrees entails issues of ethics and integrity. empathy and trust. corporate governance. the psychological contract. and other major factors which form opinions and feelings in people (many of which are inter-connected and explained on this website). 5.2 Nudge theory managerleader - choice architect Choice architect is Thaler-Sunstein terminology for someone (or a body) who leads or manages the application of Nudge theory. Thaler and Sunstein used the term choice architect in referring to a leader or manager (or other person with such responsibility, and by extension a governing organization or leadership) who uses Nudge techniques in seeking to change a groups behaviour. The terminology choice architect emphasizes that change is enabled by designing choices for people . which encourage them to make decisions . ideally towards positive helpful outcomes . Also, the judgment of positive outcomes must be made by the people undergoing the change. That is to say, the leadership is not the final judge of whether a change in people is helpful and good - the people themselves must judge this. The notion of a choice architect connects strongly to the philosophy of Nudge theory. The choice architect must act with great responsibility and integrity. Thaler and Sunstein do not specifically refer to the need for dedicated governance of the role, activities, and designs of the choice architect, but the need for this function to operate ethically and with proper accountability is strongly implied. On this point, the style and reputation of choice architect, as perceived by the people being nudged, can be a major factor influencing the success of applying Nudge theory. In many situations where Nudge theory is used, or can be used, the people being nudged will have feelings of one sort or another towards the choice architect (or whateverwhomever is perceived as this authority). These feelings influence the peoples openness to cooperation and having a positive reaction to being nudged. (See the LikeabilityCredibilityTrust influence below.) Accordingly, these perceptions are an important aspect of the choice architect role and responsibility, and (as with the philosophical considerations above), so an effective choice architect must be defined more broadly than simply the application of a Nudge process we must extend this to anything which determines how people feel towards the nudging authority . Again, (as with the philosophical considerations above) this perception of the style and reputation of the choice architect potentially includes issues of ethics and integrity. and empathy and trust. etc. and other concepts which form opinions and feelings in people (many inter-connected and explained on this website). These feelings also extend to prominent personalitiesbodies perceived to be associated with the nudging authority. (This is why corporations use famous popular and relevant endorsees to support their brands.) People naturally to focus on famous (or infamous) people and personalities if they are seen to represent or be associated with the nudging authority (for example political and corporate leaders). In such situations the style and reputation of these figurehead characters in choice architecture can be immensely significant in affecting how people feel towards the nudging authority. For example a nudge concerning well-being which is endorsed by the Dalai Lama is more likely to be received positively than if the same nudge were endorsed by a poorly regarded politician or corporate leader. To an extent however this is dependent on the purpose of the nudge - a nudge aimed at encouraging people to increase their physical fitness and exercise would be more positively and credibly received if endorsed by a popular sportsperson than the Dalai Lama. Relevance is therefore an important factor in considering this whole complex somewhat unofficial area of Nudge theory (given that Thaler and Sunstein did not specifically cover it). Thaler and Sunstein imply strongly that part of the choice architect role is to consider existing nudges, as well as to design new nudges. Its useful to note however that the choice architect role could and should extend to a more active responsibility for identifying and modifying or removing unhelpful existing nudges. Of course where this equates to changing how the global advertising industry operates, or how the internet is designed and regulated, or how the free market is moderated, this is not a small task, but the process must begin with awareness and intent, and then there is at least a target and aim to improve things, until sufficient will at suitable levels of authority exists. 5.3 Nudge principles - how people think and decide Thaler and Sunsteins book Nudge is about 250 pages long. The first 100 or so pages explain convincingly how people think about choices and make decisions. These c.100 pages are the most significant section of the book in explaining why and how Nudge theory works in a general sense . The second half of the book explores the application of Nudge theory in relation to major challenges of USA behavioral economics (notably savings and investments, credit markets, and social security) and to USA society (notably prescription drugs, organ donation, the environment and carbon tax, and to marriage). When reading this article please consider that the principles and techniques of Nudge theory can be applied far more widely than the original focus of Thaler and Sunsteins book. This review of Thaler and Sunsteins Nudge theory is essentially concerned with the how and why nudge theory works. At the root of this is understanding how people assess choices and make decisions . Thaler and Sunstein crucially assert (and offer researchevidence) that peoples decision-making thinking is generally not very clever or logical, and is commonly unhelpful or even harmful (to the people facing choices and making the decisions). This is a fundamentally important assertion, supported by explanations of very many different irrational human tendencies, or fallibilities as Thaler and Sunstein say i. e. the reasons for human fallibilities in assessing situations and making decisions. These human fallibilities are generally associated with natural human behaviour (hence the human designation explained below) and are highly significant in either acting as nudges or contributing to nudge effects. Thaler and Sunstein refer technically to this area of human fallibility as heuristics. which in the context of Nudge theory basically means the various internal references and responses which people use in assessing things, developing views, and making decisions. Here is a brief summary of the fallibilities, or heuristic tendencies, identified by Thaler and Sunstein. Each one is expanded in more detail in the heuristics section below this listing. The numbering Thaler and Sunstein did not number these points. They are numbered here to help understanding. 5.3.1 Heuristics overview - peoples thinking and decision-making tendencies Each of these summarized heuristic elements is linked to a more detailed explanation. Note that much of this theory and terminology was first established by Kahneman and Tversky. Thaler and Sunstein say that essentially these heuristics equate to nudges. Consider that to varying degrees these heuristics are already exploited (accidentally, carelessly, or very deliberately) by corporations, governments, other institutions, mass media, religions, leaders, bosses, parents, etc. Most of the people in authority using these devices will not know the term heuristics, but they nevertheless will be using these methods in different ways to influence people. heuristics in thaler-sunstein nudge theory - overview Using a knowncomparable fact and adjusting it to estimate or decide about something which is unknown. How common or visible or familiar something is perceived to be. The greater the commonnessvisibilityfamiliarity, then the greater the perceived frequency or incidence (which is often quite different to reality), and also the greater sense of trust in the validity of the thing or communication. This heuristic is greatly influenced by mass media. The tendency strongly influences perceived credibility. When we seehear something a lot, when question it less. How similar something is thought to be in relation to a perceived stereotype or assumption. People use this heuristic frequently in making assumptions. The tendency to under-estimate costs, timescales, challenges, and to over-estimate rewards and the ease of unknown things. The tendency for people to value possessions far more than if the things were not yet possessed - creating a resistance to giving any sort of concession or making change. People do not like to lose possession of things, irrespective of their actual valueimportance. The tendency for people to stay committed to current situations, for fear of changing to the unknown. Status quo bias is also caused by laziness, aversion to complexity, unnatural learning style demands, reading smallprint, etc. Presentation or orientation of information that alters its perceived nature. This includes positivenegative accentuation, juxtaposition, association, or many other ways of distorting the attractivenessunattractiveness of something. Greed, inability to delay gratification urge to satisfy aspiration, ego, etc. People are naturally biased towards short-term reward, and against long-term reward, or perceived low reward. Equates to the WIIFM factor (Whats in it for me). The tendency for people to form views and decisions without concentrating, or even negligently - and the perceived free or discount effect, which can encourage people to ignore real issues. See TANSTAAFL (There aint no such thing as a free lunch). Tactics used by people to counter their own heuristic weaknesses, which then also become heuristics. The mob effect, need for affirmation, avoiding riskembarrassment, strength in numbers, following the crowd, fear of isolation, etc. There are many cultural factors which adds to these effects, notably enabled and magnified by the internet and related technologies. People tend to over-estimate the visibilitysignificance of their own decisions and actions. This produces unhelpful pressures on thinking and can easily influence decision-making. The manner in which people are primed or softenedhardened before a situation or option is introduced - extends to enabling visualization of a viewpoint or feeling - relates to facilitative theory. This is a major area overlapping several individual heuristics, and refers to the degree to which something is designed in a way that helps us understand and make the best response to it. For example, go is usually green, not red. Potentially includes feedback, which is shown separately because of its independent significance. (Not presented as a heuristic like the above by Thaler and Sunstein, but easier to appreciate in this grouping.) This is an aspect of choice architecture but warrants separate explanation due to its importance. People are open to influence from feedback or reflection while thinking and deciding, or having decided, prior to further decisions. Its a crucial element of Nudge theory and its extensionapplication. (Not presented as a heuristic like the above by Thaler and Sunstein, but easier to appreciate in this grouping.) The above heuristics are fundamental to the understanding and application of Nudge theory. They are explained in more detail below in the main heuristics section. Additional heuristics, some of which overlap or are inferred by Thaler and Sunsteins nudges, andor which have been proposed by various theorists, are shown in the supplementary heuristics section. 5.4 Humans and Econs These are two different characterizations of people, used by Thaler and Sunstein to illustrate two different types of thinking and decision-making. Thaler and Sunstein illustrated the contrast between (irrational dumb, very common) human behaviour, and (rational smart, far less common) logical behaviour, by presenting two (notionally) different types of people, which they called human and econ . Humans are (what we might consider) real people, who make real human decisions (or fail to make a decision), driven by a wide range of human considerations and factors such as inertia, optimism, denial, lethargy, the inability to delay gratification, false assumptions, and more (covered in the heuristics listing above and below in the detailed heuristics descriptions ). This is a view of peoplesociety from a reality perspective. Econs are an imaginary type of people - imagined to exist (instead of real people) by economists, politicians, academics, etc. Econs (are imagined) always to think logically and rationally, and are not influenced by the various heuristic factors such as inertia, optimism, denial, lethargy, the inability to delay gratification, false assumptions, and more (covered below), which generally cause humans to behave in ways that are irrationally unhelpful, destructive, neglectful, etc. Econs are a view of people and society from an unrealistic perspective. A crucial aspect of Nudge theory is recognizing that econs do not really exist in terms of broad societal behaviour whereas humans definitely do. When we accept this we begin to see why and how Nudge is a viable and necessary methodology, and why enforcement, as a strategy for shifting behaviour, tends to fail. Thaler and Sunstein do not actually say that most politicians and corporate bosses believe that the world is populated by econs, but this is certainly implied. There is a flip-side to all this, namely that certain people in many corporations and governments understand extremely well that people often think and decide very instinctively and irrationally, and they exploit these weaknesses by using nudge methods for cynical and unhelpful purposes. A great benefit of Nudge theory is being able to see more clearly where and how this cynicism is at work, and potentially to confront and modify it. Thaler and Sunstein explained that at the root of these two different types of people are two different thinkingdecision-making systems, which follows in the section dealing with Automatic and Reflective systems of thinking. 5.5 Automatic system vs Reflective system (of thinking) According to Thaler-Sunstein Nudge theory (and previously developed equivalent KahnemanTversky theory): Humans are characterized as thinking automatically. Econs are characterized as thinking reflectively. This equates broadly to Daniel Kahnemans earlier presentation of this concept, which dates from the 1970s, and which refers instead to: System One thinking - automatic, instinctive, quick, biased, inaccurate, irrational, etc. System Two thinking - thoughtful, reflective, calculated, slow, rational, logical, critical, etc. The Thaler-Sunstein table contained the automaticreflective headers and the first six pairs of characteristics beneath. It is extended here to add clarity and context. the reflective tendency in people is over-estimated by policy-makers Thaler and Sunstein suggest that people use reflective decision-making very commonly, even for very important situations, such as in electoral voting, investing, major purchases, life decisions, etc. Note that AutomaticSystem One thinking is not bad or stupid. On the contrary. This is a significant point and easy to overlook or misunderstand. AutomaticSystem One thinking is very useful in certain situations, but in other situations may be unhelpful, where a more careful rational (Reflective) thinking is required. The tendency for humans to behave and think like Humans and not like robotic Econs - i. e. to prefer and more often use AutomaticSystem One thinking rather than ReflectiveSystem Two thinking - is a major factor in the success of humans as a species. Early humans and tribal groups who were able to think quickly and instinctively had a big advantage compared to humans who could not. And so this capabilitytendency became dominant in people via natural selection, (i. e. people possessing successful geneticsstrategies - such as quick thinking - survived and competed more successfully than peoplegroupstribes with weaker traits). Daniel Kahneman emphasizes that System One thinking (Automatic thinking of Humans) is actually a higher form of human intelligence than System Two thinking (Reflective thinking of Econs). This is because System One thinking enables people to make very quick assessments, based on highly sophisticated (usually entirely unconscious and instinctive) mental analysis and reference to experience and knowledge. For many decision-making situations - particularly in pre-historic times when life was much simpler, and not full of cynical distractions such as advertising, mass media, and governments - the ability to make quick instinctive assessments and decisions wasis a valuable capability. These two different methods of thinking and deciding are not bad or good in themselves. The point is that situations often demand one or the other, and people in modern times are not generally very good at using the right one, or balancing the use of both methods. This difficulty is compounded in modern times because of the pressure and scale of populations, misinformation, and distraction: People are often encouraged to think Automatically (System One), when they should instead be thinking Reflectively (System Two). Decisions that people face in modern times can be very far-reaching, with very big implications, compared with past times. Societies are bigger than ever and still growing fast. Societies are organized and managed by corporations and governments on a much bigger scale than ever before. So decisions by people nowadays can affect societies and the planet to an vast and unprecedented degree. 5.6 Heuristics - human thinking and deciding tendencies (heuristics nudges) Note: This section on heuristics, like the remainder of this article, is not a reproduction or extraction of Thaler and Sunsteins work (nor of the Kahneman-Tversky theory which largely underpins it) - it is a summary and interpretation of the concept and terminology, expanded by explanations and extensions to related ideas and examples. Accordingly if you seek to understand the Thaler-SunsteinKahneman-Tversky work first-hand, or to research and extract from the original source materials, then you should obtain the relevant original bookspapers. If you extractquote from this article please reference it appropriately, which in terms of Nudge theory, is a review and a secondary source. Heuristics feature strongly in Nudge theory - in fact heuristics equate to nudges. Thaler and Sunstein use the phrase rules of thumb to introduce and explain heuristics in the context of Nudge theory. (For quite separate interest see the rule of thumb in cliches origins ) Note that the general dictionary meaning of heuristics is broader and less specific to human thinking and deciding, compared with the more technical meaning of heuristics in psychology and Nudge theory, which refers more to the faulty thinkingdeciding commonly arising from human weaknesses, habits, conditioning, etc. The word heuristics basically means self-discovery (from Greek heuriskein, find), although in the context of Nudge theory, heuristics (which acts as a plural or singular term) more broadly refers to the various internal references and responses which people use in assessing things, developing views, and making decisions. By its internal nature, heuristic thinking tends to be personal, emotional, subjective, and instinctive. The famous old Monty Hall closed door probability problem is a fascinating example of faulty human heuristic thinking. Heuristic thinking also tends to lead to assumptions, knee-jerk reactions, habits, etc. Thaler and Sunstein particularly refer to the heuristics research of Israeli psychologists Daniel Kahneman and Amos Tversky (mentioned above as key figures alongside Thaler and Sunstein in the development of Nudge theory itself) - specifically to their identification in 1974 of (initially three) rules of thumb, which people tend to use when considering and deciding about unknowns (covered in more detail next, along with several other heuristic tendencies): Anchoring and Adjustment - comparing, then guessing from that subjective reference point Availability - actually meaning perceived frequency, commonness, and familiarity of something Representativeness - comparison based on (often unreliable subjective) stereotypes The above are three of the heuristic tendencies (or types of nudges) identified and named by Thaler and Sunstein, and earlier by Kahneman-Tversky, who identified several more which feat ure in Thaler-Sunsteins Nudge theory. All of the main heuristics presented by Thaler and Sunstein are explained in detail below. Besides these, other heuristics (or nudge effects) exist and are detailed separately as supplementary heuristics below. 5.7 Thaler and Sunsteins Nudge heuristics in detail .1 Anchoring and Adjusting (comparing then guessing) .2 Availability (perceived popularityrarity) .3 Representativeness (stereotyping and comparison) .4 Optimismover-confidence (underover-estimation or complacency) .5 Loss aversion (holding on to thingsresistance) status quo bias (inertia) .6 Status quo bias (inertia, default to no action) .7 Framing (orientation, accentuation, presentation, styling) .8 Temptation (greed, ego, short-term reward) .9 Mindlessness (negligence, avoidance, not concentrating) .10 Self-control strategies (habits and routines to counter weaknesses) .11 Following the herd (conforming, mob instinct, safety in numbers) .12 Spotlight effect (anxiety, pressure, quot. everyones watching my decisionquot, fear of making errors) .13 Priming - (the ways people can be made ready or prepared before thinking and deciding, e. g. visualization, role-modeling, building belief, offering methods not just directions) .14 Stimulu s response compatibility - overlays other heuristics and nudges - (the design of signage, language, so that it looks and seems appropriate for the message it conveys) .15 Feedback - overlays other heuristics and nudges - (given to respondent during and after thinkingdecisions, enabling adjustment and useful experience) The thinkingdecision-making heuristics explained here have existed under varying terminology for many years in the study and theory of psychology and decision-making, outside of Thaler and Sunsteins Nudge theory work, notably pioneered by Kahneman and Tversky, as discussed already. Thaler and Sunstein very cleverly assembled these sub-theories and named them, to create a cohesive series of elements by which Nudge theory can be understood and applied, rather like a series of techniques, which can (I suggest) be used as a toolkit . The names of the first three heuristics, Anchoring and Adjustment, Availability, and Representativeness, are specifically attributed by Thaler and Sunstein to psychologists Daniel Kahneman and Amos Tversky. The additional Thaler-Sunstein nudges are to varying degrees similarly derived. Here they are: .1 Anchoring and Adjustment (comparison and guessing) Using a knowncomparable fact or belief and adjusting it to guessdecide something which is unknown. The comparable reference is commonly not a good similarity. Estimates are commonly very inaccurate, resulting in unreliable guesses on which to base a decision. This thinking may be affected (unhelpfully primed ) by mass media, misreporting, popular misconception, and myths. In Thaler and Sunsteins terminology a anchor refers to a persons perceived reference point in relation to a question for which the answer is not known and is to be deduced. In simple terms an anchor is a clue, or cue, or a pointer, or a starting point, (whose scalequality we think we know reasonably reliably) which can be adjusted to help us to estimate an answer. The authors call this anchoring and adjustment. (The term is borrowed from Amos Tversky and Daniel Kahnemans work on heuristics.) Most people would naturally do this when asked a question such as the cost of something thats completely new to them. Or the time it takes to complete a task in which they have no knowledge. Similarly when people are required to answer a quantitive question, such as the height of the Empire State Building, or the population of a city, they tend first to establish internally an anchor reference (another building or city whose scale they know), and then they adjust this amount until they feel comfortable with their guess for the unknown answer. In the context of Nudge theory, anchors act as nudges. However anchors are not a very reliable way to arrive at an accurate assessment of something. The authors offer evidence that different people arbitrarily select quite different anchors for the same unknown questions, which even after adjustment commonly produce quite different estimated answers. Anchoring is inherently unreliable, but it is also dependent on differing individual standpoints. .2 Availability (perceived popularityfrequencyrarity, visibility, commonness) Perceived commonnessfamiliarity of something produces a perceived popularity or incidence of something, and a basis for trustcredibility. This is often quite different to real popularity, and is rarely a basis for trust. Perceptions are greatly influenced by mass media, which equates to unhelpful priming. The tendency operates in reverse i. e. perceived uncommonness or rarity tends to produce perceptions of low popularity, low credibility and distrust, which may be very unreliable. Thaler and Sunstein use the term availability in referring to to visibility . or how commonly something is perceived to arise in a general sense, which significantly influences peoples assessment of how likely it is to arise in a personal sense. (The term availability is borrowed from Amos Tversky and Daniel Kahnemans work on heuristics.) Thaler and Sunstein give the example of the visibility (availability) of homicides (in the media notably) compared to that of suicides. This leads to the incorrect belief among most people that homicides are more common than suicides, when the opposite is true, by a considerable margin. For the same heuristic reason, most people are far more cautious when taking a plane journey than when crossing the road or driving their car, when in fact its far more dangerous statistically to cross the road or drive a car than take a plane journey. And also for the same heuristic reason, billions of people continue to drink too much alcohol, when they would not dare to touch an ecstasy tablet. Thousands die every day from alcohol-related disease. Deaths from ecstasy tablets are perhaps a few hundred in the history of mankind. The perception of frequency or visibility (availability) - how common something is - is an important heuristic within Nudge theory. People often assess likely outcomes based on a false perception of actual facts and statistics. It follows therefore, assert Thaler and Sunstein, that by shifting false perceptions, so in turn peoples assessments of outcomes can be shifted too, along with related decision-making. Here is an practical example of the use of the availability (visibility) effect, offered by Thaler and Sunstein in the 2008 book, Nudge, quot. A good way to increase peoples fear of a bad outcome is to remind them of a related incident in which things went wrong a good way to increase peoples confidence is to remind them of a similar situation in which everything worked out for the best. quot The Availability heuristic equates in some situations to familiarity (that something seems familiar to us), and this is strongly linked to trust (in the validity or credibility of something, or information about something). The concept of branding and brand awareness is an example of the availability heuristic in use. Corporations spend millions building and maintaining the familiarity of their brands and logos, etc. because this increases our sense of trust, and a perceived sense of reliability, in the productsservices under the brands in question. Incidentally this effect offers an example of two or more heuristics (nudges) working together, because brand familiarity acts potently with the following the herd (conforming ) heuristic. .3 Representativeness (stereotyping, comparison) People refer to personal stereotypes or assumptions in seeking references for unknowns. This is highly subjective, susceptible to misinformation, and a very unreliable basis for forming opinions and making decisions. This thinking is affected (unhelpfully primed ) by mass media promotion of stereotypes and biases. Thaler and Sunstein suggest the word similarity to clarify representativeness (which is borrowed from Amos Tversky and Daniel Kahnemans work on heuristics). They also relate this heuristic mechanism to stereotyping. We see representativeness bias occurring widely in peoples thinking when stereotyping and discriminating on the basis of race, religion, gender, sexuality, age, and social class, etc. Assessments and decisions based on similarity assumptions and extensions are extremely common and happen daily on a vast scale in every field imaginable. The tendency is seen also in the extension or extrapolation of a small sample to produce a wrong conclusion about the bigger picture. As with the other heuristic tendency availability (visibility or commonness), the mass media contributes greatly to the building and maintaining of stereotypes in all aspects of life. The representativeness heuristic is sometimes a confusion between, or reversal of, cause and effect. Or it may be a faulty correlation - for example, the common mistaken view that people can catch a cold from being out in cold weather, whereas a cold is a virus that is passed from person to person. Representativeness misjudgments may alternatively stem from the misinterpretation of a chance or random pattern as being a normal or standard effect, which can be extended or projected, much like the extension of a stereotype. .4 Optimismover-confidence (overunder-estimation, complacency, ignoring or taking risks) People tend to under-estimate expensescosts, timescales, complexity, and the difficulty of unfamiliar challenges. People tend to over-estimate rewards and the ease of unfamiliar tasks. This can cause denial, complacency, and insufficient planning, attention, resourcing, time, etc. The Optimism heuristic generally ignores, denies, under-estimates or justifies risk. This is the tendency to under-estimate costs, timescales, challenges, and to over-estimate rewards and the ease of unknown things. This tendency leads to complacency, inertia, extravagance, wastage, delays, failures to make budgets and control spending, setting unreasonable goals and expectations. The Optimism heuristic is closely linked with risk - either as an effect of low perceived risk, or a cause of ignoring or under-estimating risk, or of justifying taking risk. When people mismanage their household budgets by spending too much of their monthly salary in the first couple of weeks of the month, this is typically due to the optimism heuristic. They hope their money will last, and fail to check account balances, rather than budgeting and controlling expenditure. This for many people becomes a lifelong repeating cycle of failing to balance their outgoings and incomes. Optimism then influences many peoples decisions to seek and commit to punitively expensive loans. Woven into these feelings is the unconscious or deliberate denial of risks arising from the thinking and decision. The same tendencies cause many people to: take a hopeful approach to retirement rather than planning and saving, avoid medical diagnosis and treatment when they get sick, delay getting repairs done until the roof is actually leaking bucketfuls, and defer and procrastinate in considering the urgency of all sorts of necessary jobs. The optimism heuristic is also commonly responsible for people being late, when they imagine they can complete jobs and travel much faster than proves to be so. The Optimism tendency is also responsible for people finding themselves in awkward embarrassing positions when misjudgments have been made, compounded by reluctance or denial in accepting that corrective action is necessary, causing situations to go from bad to worse. As with other heuristic failings, blame can soon emerge. quotSomeone should have told me. quot is a common reaction to problems arising from this heuristic. A useful approach for preventing or countering the risks of the optimismover-confidence heuristic is designing feedback (covered below) into processes and choices offered to people. The Optimism heuristic is an opposing instinct to the Loss aversion heuristic shown below. Depending on the person and situation one of these may be a dominant factor in someones thinking. .5 Loss aversion (holding on, resistance) People tend to value something more when they possess it, than if they do not (Thaler and Sunstein suggest that this over-valuation equates to 100 or double) People (therefore) tend to resist (to a disproportionate degree) losing something they already possess, or exchanging it for something of equal or even greater value. This causes inertia and tendency to default to inaction (which potentially equates to Status quo bias. (below). The Loss aversion heuristic is a major cause of risk avoidance, which also produces inertia. Thaler and Sunstein suggest that most people are fundamentally loss averse, so that assessments and decisions tend to me made so as to avoid a perceived loss, even if the loss is more than compensated by a different gain. Thaler and Sunstein assert that: quot. Roughly speaking, losing something makes you twice as miserable as gaining the same thing makes you happy. quot It seems that when people believe they must quot. give something up, they are hurt more than they are pleased to acquire the very same thing. quot The authors extend this point to assert that quot. Loss aversion helps produce inertia, meaning a strong desire to stick with your current holdings. quot The Loss aversion heuristic produces a heightened sense of risk. Most people tend to avoid risk. Thinking becomes driven by a feeling that change will be disadvantageous, and so decisions are made either to preserve, conserve or consolidate the current position (often seen a holding something) and this relates strongly to the Status quo heuristic, explained below. The Loss aversion heuristic is an opposing instinct to the Optimism heuristic explained above. Loss aversion avoids risk, whereas Optimism ignores, minimizes or justifies risk. .6 Status quo bias (inertia, resistance to change, default to inaction) People generally fear change, especially of uncertain nature. Fear of error, embarrassment, rejection, etc. may also contribute to inertia depending on personality and life-stage and situation. Status quo bias may be compounded by laziness, aversion to complexity and effort, etc. Thaler and Sunstein refer to status quo bias, being a tendency for humans to want to maintain things in their present form and so to resist change. Inertia (where people find it easier to do nothing rather than make a change) is a powerful effect, and has been used by leaders and communicators for generations. Inertia relates to the use of defaults by authorities and corporations, which we see every day in checkboxes, on forms and websites, and embedded more deeply into how options are often presented. The use of inertia as a selling, marketing and governing mechanism is controversial, especially where the default (what happens in the event of no change or decision) produces advantages for a sellergoverning authority, and disadvantages or unnecessary costs for customers. Inertia and defaults feature strongly in choice architecture, explained below - the signage and structures that influence our attitudes prior to decision-making. Logically, the authors say that inertia is produced by the human tendency to avoid change, effort, risk, etc. which in turn may be due to laziness, aversion to time-consuming complexity (for example in understanding complicated options), andor simply a discomfort felt when considering changing something. We see inertia especially affecting peoples decisions when having to adopt new technologies, or decluttering a home, or working towards a new qualification or career change. Thaler and Sunstein refer to the use of inertia and default in securing permissions for organ donation as a positive helpful application of the technique. They offer evidence by which the permission default was switched to opt-out from opt-in, so that peoples natural inertia in checking boxes produced a massive increase in organ donation permissions. It is not difficult to imagine how this simple but very potent heuristic - inertia, doing nothing - has been and will continue to be used widely for unethical purposes. .7 Framing (orientation, accentuation, presentation) The presentation or orientation of information can alter its perceived meaningnature. This includes positivenegative accentuation, juxtaposition, association, or many other ways of distorting the attractivenessunattractiveness of something. The description of a choice can entirely alter the way people notice and perceive the meaning and implications of the choice. Framing is proposed by the authors as a further significant heuristic in how people assess options and make decisions. Language is immensely flexible. Something which is a good possibilityoption may always be described or framed as a poor one, and vice-versa. Thaler and Sunstein offer the example of illness diagnosis and treatmentrecovery prognosis between doctor and patient: that if a medical consultant focuses on death rates, people are put off treatment, whereas a focus on survival rates tends to increase agreement for treatment, without any alteration of the actual figures. Its a matter of orientation and presentation, or framing. The notion of accentuating the positive is an aspect of framing. A child is more likely to spill a drink if told, quotDont spill that drink, quot than if told, quotBe careful with that drink. quot When a sports coach says to the team at half-time: quotNow go win this game, quot rather than quotDont lose this game, quot the coach is framing the same instruction in a way that is more likely to get a good result. Framing affects the way people feel and think about about something primarily due to the way in which a choice or option is described. This heuristic may operate in parallel with more direct forms of mood-changing. which is described in the supplementary (non-Thaler-Sunstein) heuristics section later. .8 Temptation (greed, ego, short-term reward, inability to delay gratification) People tend to want short-term more than long-term reward, whether the values are real or perceived. People are attracted to choices which they perceive to be easy, andor which they perceive will make like easier for themselves. People tend to behave according to the maxim that: A bird in the hand is worth two in the bush - i. e. people are tempted by having something now, more than something bigger in the future. People are tempted by different things according to personality and situation. People are generally and naturally attracted to options which offer quick appealing reward. What is regarded as reward by people can take many different forms, for example: materialfinancial, optimizing return on effortinput (big outcome from small investment), recognition, praise, thanks needs of ego and self-image, avoidance of challengingdifficult effort, responsibility, control, security and protection, benefits for friendschildrenetc, power, love and affection, food, sex, shelter, etc. The values people place on different types of rewards depend on a persons circumstances and feelings at the time. See the theories of Maslow and Herzberg to understand motivationneeds and reward in more detail. Temptation is a very powerful heuristic - people are naturally biased towards short-term reward, and against long-term reward, or perceived low reward. See the WIIFM factor (Whats in it for me). We see the temptation heuristic being exploited to extreme degrees in the operation of most gambling productsservices. Many people are naturally are drawn to possibilities which offer large rewards for a small effort or investment - even if logic, facts, and experience, suggest otherwise. Every day around the globe millions of intelligent mature people gamble collectively millions of dollars on lotteries, which these people know offer odds of several millions-to-one against winning a major prize. They do this mainly because for them the temptation heuristic is more powerful than facts and logic. .9 Mindlessness (negligence, not concentrating) People sometimes form views and decisions without concentrating, or negligently. Distraction, illusion, or difficulty can be major factors in reducing concentration. Simple human error or other common human weaknesses can cause oversights and mistakes. Where Thaler and Sunstein use the term mindlessness this refers to various sorts of human error in considering situations and options. Mindlessness is the tendency for people to form views and decisions carelessly. This may be due to difficulty and complexity, stress and pressure, laziness, anxiety, poor awareness or education, distraction or deception, false assumptions, illusions, declining mental powers, etc. In the modern age, this human tendency to overlook important details is exploited by various authorities, especially cynical corporations. For example a perceived free or discount offer can be intentionally distracting, encouraging people to ignore more important issues. Where retailers exaggerate discounts by stating artificially high previous selling prices they are deliberately trying to produce and exploit a mindlessness in people. Mindlessness is related to framing (the way that a choice is described) and over-optimism (hoping that things are okay). See TANSTAAFL (There aint no such thing as a free lunch). People are practising mindlessness when they fail to read terms and conditions, and other small print. Its a very widespread behaviour, and is very widely encouraged and exploited by corporations and authorities. Mindlessness usually causes people to make unhelpful decisions, or to overlook the need for a decision. Authorities, leaders, corporations (and other choice architects) therefore have a responsibility to identify risks of mindlessness in designed choices, and to improve clarity and visibility as appropriate. It is not ethical to defend the poor design of an important choice (in a communication, process, etc) by saying that people should have read the small print. Choice architects should know that mindlessness is a real human tendency, and take measures to protect people from such vulnerability. .10 Self-control strategies (habits and routines to counter weaknesses) People are often aware that they have some heuristic weaknesses, which they might regard as bad habits, or simply weaknesses). People commonly devise routines and protections against their perceived weaknesses. Strategies which people use to protect themselves from their own weaknesses become new heuristic tendencies potential weaknesses. Most people know that they have human heuristic weaknesses, although theyd be highly unlikely to use that terminology. People instead tend to acknowledge their own vulnerability to heuristic weakness in expressions such as: I am my own worst enemy I would lose my own head if it were not screwed on I should have made a list I should count to ten. (to give thinking-time before speakingacting) I cant resist a bargain I wear my heart on my sleeve I should have known it was too good to be true.. Many people devise tactics to overcome their weaknesses. Interestingly many of these strategies then act as additional heuristics. Thaler and Sunstein give the example of people who put their alarm-clocks out of reach, as a strategy to counter the temptation heuristic which encourages people to switch off the alarm and go back to sleep. Here are some more examples of self-control heuristics that people use to counter other heuristic weaknesses: keeping a watch a few minutes fast, to counter a lateness tendency leaving a car parked on a steep hill in neutral gear, for fear of forgetting its in gear when they return to it and start the engine, which would cause the car to leap forward (a car parked on a steep hill should be left in gear, as a safety measure in case of hand-brake failure) using the same PIN code for all secure devices and accounts, for fear of forgetting lots of different ones running more bank accounts than necessary (or saving money in different pots) for fear of being unable to control spending using fewer accountspots setting task deadlines in advance of actual due dates for fear of missing them keeping unnecessarily big stocks of consumable products for fear of running outforgetting to re-order Many self-control strategies like these (and there are hundreds more) actually become new weaknesses. Choice architects should recognize when such tactics could be present in peoples behaviour, and make allowances in how choices are offered accordingly. .11 Following the Herd (conforming, mob instinct) Following the herd (crowd) without question causes the mob effect, mob rule, daft committee decisions, and underpins fashions, fads, crazes and myths. The tendency is caused by peoples need for affirmation, avoiding riskembarrassment, strength in numbers, fear of isolation, etc. Mass media, and authorities and institutions with vested interests in certain beliefs, commonly help build and maintain false group-beliefs. Thaler and Sunstein explore this heuristic (they call it following the herd) at great length and depth, understandably, because it is a very substantial aspect of group and societal behaviour. The tendency is known by many other terms, some very loosely, such as the mob effect, mob rule, majority rule, when in Rome. (. do as the Romans do), the herding effect, behaving like sheep, strength in numbers, lowest common denominator, among other terms and metaphors. There are many cultural factors which enhance these effects, especially when enabled and magnified by modern internetcomputercommunications technologies. The common human urge (conscious or unconscious) to conform to the behaviours of others, or to social norms, expectations and customs, has many different causes, for example: the need for affirmation (being like others, which produces feelings of affirmation) avoiding riskembarrassmentbeing wrong (not raising ones head above the parapet) fear of isolation, ridicule, persecution, retribution, etc allegiance to a societal grouping, religion, cause, campaign, movement, etc. Fear (of embarrassment, isolation, being wrong, loss of reputation, etc) is a big factor in this heuristic. So is the spotlight effect. Note that this sort of conforming is to a perceived norm, which is not necessarily the reality. The analogous fairy tale of The Emperors New Clothes illustrates the bizarre susceptibility of humans to conforming to a perceived majority belief, even if unproven or plainly daft. (A pompous king is persuaded by mischievous tailors that a magnificent expensive suit they have produced for him can only be seen by clever people, when in fact there is no suit at all, so the king is in fact naked. The king, his courtiers, and crowds, are all tricked into agreeing that the kings suit is wondrous, even though the king is naked, because each person does not dare to appear to be stupid - except eventually a small boy, unaware of the tailors claims, who exposes the sham.) This is similar to experience of sitting in a classroom situation not daring to ask for clarification of a complex issue, because we imagine everyone else understands, when in fact not everybody does, and people are conforming to the same false notion. The fascinating Abilene Paradox is another example of unhelpful group thinking according to this (following the herdconforming) heuristic, by which a group, especially a committee or supposedly cooperative united group, is prone to making idiotic decisions based on the individual members misreading and then following a wrongly perceived group view. Confusingly when lots of people conform to a false but perceived norm, such group delusions can easily produce actual real norms, which are based on nothing but the imagination of lots of people. Many experts would also say that conforming in one way or another has also been a necessary survival instinct throughout human history, so that the tendency may actually be to a degree hard-wired or genetically inherited by each of us. Whatever the causes of conformity its immensely powerful and potentially lethal too. All wars are based on soldiers and populations conforming. (This is not the same as following orders its actually willingly doing as others do, following virtually without question, what a big crowd of fellow humans are doing). Sports and music fan-bases would not exist without the human heuristic of conforming. Nor would Facebook or Google or Twitter exist without human conformity. Nor would there be a fashion industry, or strongly branded merchandise, were it not for the human urge to conform. In fact the human urge to confirm is so powerful that non-conformers are commonly ridiculed or persecuted, quite outside of wars, and this behaviour can be seen in tiny children as well as in supposedly intelligent mature adults. .12 Spotlight Effect (anxiety, pressure, all eyes on me, fear of making mistakes) People tend to imagine their individual actionsdecisions are very noticeable to a group. This can produce unhelpful pressures on thinking, and influence decision-making. Fear is a main factor - fear of embarrassment, criticism, making mistakes, isolation, etc. This is the tendency for people to over-estimate the visibilitysignificance of their own decisions and actions, which Thaler and Sunstein call the spotlight effect. The metaphor alludes to the feeling of being centre-stage, with a spotlight and all eyes upon us, so that our every action is seen by everyone. In reality groups of other people - as a group - do not notice what we do and care very little what we do and decide. (This is different from the more realistic fear that our actions and decisions can be highly visible and significant to to another individual person, or a small personally connected group, but this is a separate matter entirely.) The effect of the spotlight effect heuristic is to pressurize our thinking and decision-making, one way or another, as if everyone were judging us andor dependent upon our decision. The spotlight effect is strongly linked to, and adds to the potency of, the conforming heuristic (following the herd). The spotlight effect is a particularly significant false factor in the early development stages of mob rule situations, which can then develop to propose much bigger real threats to non-conforming individuals. As with many other heuristics, the spotlight effect human weakness is often exploited in cynical ways by corporations, thereby persuading individuals to conform to a false reality. Much of the corporatecommercial world embeds this tactic into its advertising in attempting, often very successfully, to convince audiences that the productservicelifestyle being promoted is far more popular and normal than it actually is. The tobacco industry did this for decades, and actually continues to do so via product placement in movies, etc. Ethical choice architecture should obviously avoid presenting norms that are unhelpful to people. .13 Priming (preparing people for thinking and decisions) People can be helped to approach choices in a more prepared state. This happens before the choice is experienced. Many people need and benefit from this effect. The choice architect responsibility is extended to peoples attitude, as part of the choice design. The manner in which people are primed or softenedhardened before a situation or option is introduced - extends to enabling visualization of a viewpoint or feeling - relates to facilitative theory. Peoples openness and preferences towards choices are influenced by what happens before and while an option is emerging. Thaler and Sunstein call this preparatory stage priming. This relates to and overlaps with framing. The priming heuristic potentially includes the imagining or visualization of a viewpoint or feeling (i. e. the person consciously or unconsciously imagines the feeling or consequences of a decision). This potentially includes peoples self-image, which is is significant in affecting personal response and responsiveness to all sorts of things, including nudges. See relevance in the the supplementary heuristics section, which is greatly affected by self-image. Priming relates to NLP (neuro-linguistic programming). clean language. transactional analysis. facilitative theory, and many other psychological concepts which are concerned with mental attitude. Body language can also feature in priming. A classic example of priming, although not called this at the time, is the Hawthorne Effect experiments of Elton Mayo. Sports coaches frequently use the priming heuristic to influence the feelings and decisions of athletes and teams. The centuries-old leadership notion of fighting for a god or or QueenKing and country is a form of priming. Most advertising seeks to employ a form of priming, often by first showing attractive sexycuddly images of people, scenery, cars, puppies ands kittens, etc. Many stories, jokes and analogies also use priming in creating a certain attitude or expectation in the audience. Separately, a very specific and simple aspect of priming has been recognized (although not named as such) in psychology and concepts such as NLP for decades, in the use and avoidance of certain words when seeking to influences human responses, for example: The word how is more likely to produce a positive response than why Words like situation and challenge are more positively stimulating than words like problem and difficulty, In communications designed to motivate, using the word but usually prompts a negative feeling, compared to and or also. Single clear positive messagesinstructionsrequests work better than communications which carry more than one main message. A request to do something generally produces better response levels than a request which instructs not to or dont do something. These examples are also arguably forms of framing, although framing refers to a more general orientation of a communication, rather than the preparatory priming aspect. .14 Stimulus Response Compatibility (language, signage, design - does the look and feel of the choice match the meaning of the choice) Stimulus Response Compatibility refers to how reliably the look and feel (signs and signals) of a choice reflectrepresent its meaning. This heuristic concept overlaps many other heuristics (types of nudges). There are cultural differences - signalssigns can mean different things to different cultures. Thaler and Sunstein refer to this area of heuristics as choice architecture, and also as stimulus response compatibility. Thaler and Sunsteins use of the term choice architecture for this area of heuristics is a little confusing, and inconsistent with the term choice architect, which embraces all heuristics. Stimulus Response Compatibility refers to whether the look and feel of the communication or signal (the stimulus) matches (is compatible with) the message that we receive or infer (our response) from the communication. In other words, is our brain being tricked See the weird colour trick for demonstration of how Stimulus Response Compatibility can very easily mislead the brain. This aspect of human thinking is not presented by Thaler and Sunstein as a stand-alone heuristic like the above listed items, but is easier to appreciate in this grouping, especially when heuristics are seen as nudges in a toolkit. Stimulus Response Compatibility is an aspect of semiotics. which is the studyscience of how meaning is conveyed in language, signage, symbols, stories, metaphors, etc. and generally any other visual carrier of meaning. In honest communications, the appearance or feel of something (a sign, words, or anything designed for us to engage with or respond to) should help us understand how to respond or engage with it . (rather than encourage us to respond in some other way). A basic example of this effect is any optical illusion, by which something seems to be what it is not. The brain can easily be tricked, for example: What do the words in the triangle say Most people seeing this for the first time say, Paris in the Spring. But the word the appears twice. The brain has been tricked. It is easy to miss the finer points in life. Folk are frequently guilty of falling into this trap. The letter f appears eight times in the box. People commonly count seven, by failing to see the last but one f. The stimulus response compatibility effect on thinking - where the brain is tricked by incompatibility - is a major area of heuristics. It overlaps with several other individual heuristics, and is hugely significant in how (usually visual) communications and signals are designed, in terms of human expectation and conditioning, so that commonly we decide about things prematurely, often not even bothering to examine and understand the detail. Generally green means go or okay, and red means stop or danger, even if the words say something different. Capital-letter (upper-case) words generally emphasize importance, loudness, priority, etc. even if the wordsmeaning are unimportant. A tick means yes, an X means no, usually. A white-out box invites us to write something in it. Many more examples exist in thousands of very recognizable patterns, customs and symbols that we see around us, and these signals are increasing still more in the digital age. The extent to which the look and feel of something prepares us for a certain response is a very big factor in how we are nudged towards one response or another. Imagine how much slower the world would work if overnight the enter key were renamed or moved elsewhere on computer keyboards. Every year there is a major electoral dispute somewhere about the design of a voting slip, because the design confused people as to how many boxes should be marked. More commonly, the very tiny extensive small-print in most contracts discourages us from reading it. The stimulus (small, difficult to read) is not compatible with the response we should have (quot. these terms and conditions are important, so I should read themquot). We expect important information to be conveyed clearly, concisely, in large print. When we see lots of small print we are not inclined to read it because small-print equates to unimportant, and its difficult to read too because of the language, length of the text, and layout. This is often a cynical intention of the communicator because they know that if people actually read the small-print they would hesitate to agree to the contract. The communicator is deliberately creating and exploiting a stimulus that is incompatible with the response that the communication deserves. Thaler and Sunstein offer a couple of simple amusing examples of stimulus response incompatibility, notably: a door which must be pushed to open, but which has big handles on it, so people wrongly think it must be pulled and the daft four-in-a-line control knobs on nearly every cooker, which are incompatible with the four-in-a-square layout of the hob burners. And one example of helpful compatibility, which arises more than once in the Nudge book, is that of the image of a fly inside mens urinals, so as to improve aim, and reduce cleaning and hygiene problems (it works). You will encounter examples every day of communicationsstimuli that are designed helpfully, and unhelpfully. Many unhelpful designs are merely accidental or careless, but plenty are designed deliberately to encourage you to respond in a way that is not in your best interests. This area of heuristics overlaps strongly with conditioning, and is especially potent when combined with defaults (i. e. what specifically happens when you decide to do nothing), inertia, checkboxes, and other mechanisms which leave people wishing theyd taken more time thinking how to respond. Bear in mind that aspects of this heuristic are subject to major cultural variation. For instance the thumbs-up sign is insulting in certain parts of the world, and generally icons based on western body language are certainly not always transferable internationally with consistent meaning. .15 Feedback (during thinking and decision-making, enabling correction and useful experience) Feedback equates to helping people understand their situations, thinking, and decisions, responsively during thinking and deciding processes. People are open to helpinfluence from feedback or reflection while thinking and deciding, or having decided, prior to further decisions. Feedback is a relatively skillful and sophisticated aspect designing choices. Feedback is a crucial element of optimizing the effectiveness of Nudge theory. This is a major and sophisticated aspect of heuristics, and is part of choice architecture as defined by Thaler and Sunstein. Note that feedback here is mainly a part of a system design, for a process, or signage, as experienced by large groups of users, (rather than conventional one-to-one feedback). (Feedback is not presented by Thaler and Sunstein as a stand-alone heuristic like the above listed items. It is is easier to appreciate in this grouping of heuristics, especially when heuristics are seen as nudges in a toolkit.) As with other decision-making heuristics explained here, feedback has existed in the study and theory of decision-making for many years quite outside of Thaler and Sunsteins Nudge theory work. Humans are potentially able to respond very well to receiving feedback about their actions and decisions. We do not always do so however, because this depends how the feedback is given and how we are feeling at the time. The feedback may be accurate, but if it is given in the wrong way, or the recipient is not feeling good about himherself, then theres no certainty that the feedback will be absorbed or acted on. And sometimes poorly designed feedback can make things worse. To imagine or explain how feedback operates while people are taken through a process, a useful example is the signage during road diversions, which provides good and bad examples, especially where people are liable to make wrong turnings (unhelpful decisions). Good feedback offers signs informing people of mistakes, and signs directing people back to the correct route. Poor feedback fails to anticipate that some people may find themselves on the wrong road, and allows people to continue unaware of their mistakes, often becoming completely lost. Separately Transactional Analysis is very helpful in understanding - at an emotional level - why feedback may be received positively or negatively, and how to design feedback and reflective systems so that they are as helpful as possible. Transactional Analysis is typically concerned with personal one-to-one communications, however its principles transfer very readily to the design of systems and processes, and how organizations and systems should interact with userscustomersetc. Facilitative decision-making is also very relevant and helpful in understanding and designing feedback that helps people through a discovery and decision process. This sort of facilitative nudging methodology is a major and sophisticated area of heuristics in its own right, and is detailed separately in the supplementary heuristics section. We see many examples on the web of processes which include feedback, and in other computerized applications. Some are very good, where the user is coached through a thinkingdeciding process others are very unhelpful. Your own experiences will give you plenty of examples. In appreciating what feedback is required for users in processes and systems - to confirm, give feedback, correct, and offer helpful options and information - it can be useful to step away from the actual project (because choice architects are often so close to a project that its difficult to imagine what a user needs). Feedback - in helping people think and decide - should: confirm to people when they are making good decisions checkaskpromptcorrect people wherever an error of judgment might have occurred suggest alternativeremedial action in the event of errors and should do all this at appropriate timesstages in an appropriate manner (again see Transactional Analysis) Some sort of flowchart diagram is useful in designing good feedback systems, by which every possible choiceoptiondecision point in the decision-making process is identified, analysed, and mapped (showing all the possible paths and outcomes available). This enables appropriate support to be designed to ensure that userscustomers are helped at each stage depending on the choices they make. This completes the summary and explanation of the heuristics identified by Thaler and Sunstein. However many other additional heuristics feature in human thinkingdecision-making, and could be considered part of a Nudge theory methodology or toolkit. Several of these major supplementary heuristics are explained in detail next, below. 6. Other types of nudges, supplementary heuristics, adaptationsextensions There are many other aspects of human communicatingengaging which, while not specifically identified as heuristics or nudges by Thaler and Sunstein, might be regarded as such, and deserve explanation and inclusion here, and especially in the Nudge toolkit. Some of these heuristics are similar to, or overlap, Thaler-Sunstein nudges. Others are quite different and do not feature in the Thaler-Sunstein published work. None of the following are specifically named or categorized as nudges by Thaler and Sunstein. So please dont suggest they are. Some of these may be similar to heuristic theories of other academics and psychologists, including Kahneman and Tversky, however the collection is not intended to represent anyones specific theories. The field of heuristics is broad, changing, and open to wide interpretation. The collection which follows is an attempt to categorize and explain the main effects in an accessible and useable manner. On which point, the word intervention is used in this section in referring to actions, communications, choices, nudges, inputs, etc. that are devised and applied by leaders in attempting to alter peoples behaviourbehavior. Please note also that these are generalized aspects of human thinking. Not everyone behaves predictably according to these influences. First a summary table, linked to and followed by more detailed explanations and examples. N. B. The following heuristics are not named or defined as nudges by Thaler and Sunstein, although some arise in their examples and supporting narrative, and others are logical extensions of Thaler-Sunstein ideas, andor have been proposed in various forms by other theorists. The table below attempts to offer a simple accessible summary of these ideas and their meanings, which in turn helps to identify where they exist, and how they might be modified or used. supplementary heuristics (nudges) Positioning, moving things, prominence, proximity, etc. The physical or visual positioning of something that people engage with, or which influences the way people engage with something else. Expiry dates, limited stock, and forbidden fruit. The impression that opportunity could be lost, or something is in limited supply. Easy, rather than difficult (at a personal level). Ease of engagement, a perceived high return on on low effort, path of least resistance. When an intervention is sympathetic to someone, then engaging and responding to it is easier than something which is unsympathetic. Is the intervention in tune with the target audience Visibility - the efficiency or reach of the communication or signal. This is a measure of how many people are exposed to an intervention, and how many times people are exposed to it. Increased accessibility tends to increase responsiveness. Trust, reputation, credibility. People are more likely to engage and feel positively towards interventions associated with trusted, credible, likeable authorities and the figurehead leaderscharacters perceived to represent the authority in question. Meaningful fit with peoples self-image. People consciously or unconsciously ask themselves, quotIs this for mequot or quotIs this relevant to my needs and situationquot This is similar to framing but more personal and individually evaluated. How the intervention makes people feel. Kahneman and Tversky theorized in detail about different types of mood influences. Its a form of priming but more specifically entails stimulation and signals which affect peoples feelings, which in turn affect our thinking and decision-making. A big influence on peoples thinking and a major thread running through lots of heuristics. Used widely throughout human history as perhaps the most immediately impactful nudge of all, but fear contains more complexity and a range of applications, for potentially helpful effect, aside from the usual unhelpful usage. People are helped to understand and decide, free of bias. This is a very sophisticated, proactive and personally responsive heuristic which extends a combination of several heuristics, notably such as priming and feedback . Alteration of attitude via other sensory stimulation, aside from more obvious mood-changers. Sensory stimulants include interventions such as sound and music, colourcolor, brightness, touch and texture, heat and cold, wetness, humidity, air quality, and certain forms of body language . The nudges in the table above and explained below in more detail are not identified as specific nudges by Thaler-Sunstein, although some overlap Thaler-Sunstein ideas. The above nudges are additions, extensions or adaptations, perhaps omissions, of the Thaler-Sunstein ideas, and also serve to further explain and clarify the principles which underpin Nudge theory, and how it might be taught and applied. additional nudges - detail 6.1 Positioning - locating things, moving things, prominence This refers to the visiblephysical positioning of something. This might be the positioning of something to be read or used, or the positioning of something else which affects, or is relative to, the accessvisibility of the subjectissue concerned. For example, the positioning of words and pictures in notices and adverts the positioning of notices and adverts themselves the positioning of things which affect peoples movements, such as facilities, equipment, etc. that people engage with. Thaler and Sunstein offer examples of this sort of intervention although do not categorize it as a heuristic or nudge as such. A notable Thaler-Sunstein example is the positioning of different types of foods in a self-service cafeteria. There are lots of other examples of this sort of choice architecture being used in the world, especially in retailing and advertising. The advertising industry understands this positional strategy very well. Positioning or moving things can be a very powerful way to influence all sorts of human behaviour where choice is affected by visibilityprominence, physical access or location. For example moving the position of a drinks machine in a publicwork environment would affect the movement of people, conceivably to achieve an aim that might otherwise be completely unrelated to the drinks service. There are many possibilities to alter peoples choices by positioning or moving things (including adverts and information notices), so that people are exposed to different experiences and options. 6.2 Limiting - expiry dates, limited stock, and forbidden fruit Thaler and Sunstein do not specifically categorize this as a heuristic or nudge, yet the fear of losing an opportunity, or of limited offer, is a powerful influence on many peoples thinking. A psychology analogy to illustrate a major effect within this notion is that of chasing after a dog (it will run away), rather than running away from the dog (it will come after you). Or the dating maxim playing hard to get. For some reason human beings are generally conditioned to want something more if it is less easy to acquire, and this provides various ways to build new choices. Human tendency is to be more attracted to something which is elusive, fleetingly available, limited, etc. than things that are plentiful, unlimited, always available, etc. A further analogy is that of a child who will be more inclined to pursue things that are restricted or banned, and to refuse things which are offered enthusiastically. This is called loosely reverse psychology in many situations, for example the concept of withholding something from someone, which often has the effect of increasing the persons desire for it. People naturally seem to infer a higher value on something if it is rare, about to be lost, or difficult to acquire, etc. than on things which are common and easy to acquire, or even difficult to avoid. 6.3 Sympathy - Ease of adoption, path of least resistance (water flows downhill) Human instinctively try to conserve their energy. This is not laziness, its merely being efficient. We naturally prefer to make life as easy as possible for ourselves. Therefore people will tend to behave in quite predictable ways concerning the ease in which a task or process can be approached (or avoided). We take the path of least resistance, (or what we believe to be the path of least resistance). Accordingly, choices which are designed to match this preference will tend to be preferred to choices which do not. We might think of this as designing choices that are sympathetic to peoples inclinations and habits, etc. Or designing choices that go with the flow of peoples natural or habitual behaviours. This is an over-arching heuristic which can be seen operating in various specific nudges, but also in itself sympathetic design of choices can be a powerful way to shape choices, and a reminder to check that choices fit with this human tendency. Put another way, if people think that there is a very much easier option (than choices you design) - a path or very little resistance - then they will tend to take it. If a designed choice (action or decision) isnt easy for people, then they are unlikely to take it. We can also consider this influence in terms of return on effort. People respond well to options which offer a high reward or yield for relatively low effort or input. 6.4 Accessibility - efficiency of communication, reach, penetration This human preference is certainly a feature of a few of the Thaler-Sunstein nudges, but it stands alone as a very important basis for designing options for people. Using larger fonttype size in detailed printed communications improves peoples ease in reading them, especially older people. Translating materials into different languages increases accessibility for foreign language speakers. Making materials available in different media increases the opportunities for people to see the materials concerned. Distributing information by post, door-to-door, will reach a wider audience than a few pages page on a website. These are all statements of the obvious, and yet this basic sort of accessibility is often forgotten when choices are designed and offered to people. In advertising theory this relates to reach and penetration, which are basically measures of how many people seereceive the communication. In a deeper sense, and in terms of Nudge theory, this refers to how effectively a signal (or nudge) reaches the audience - so that people: seeexperience it absorb it understand it (or can assimilate it - take it in, even unconsciously) and are affected by it. This potentially entails lots of things: Accessibility refers to optimizing the extent to which an audience will see, receive, experience, understand (or otherwise assimilate and process internally) and be affected by the signalcommunicationinput (nudge) from the sender or giver (choice architect). Accessibility is another powerful aspect of choice design. On a simple level of decision-making, people can only begin to think and decide about things if they are properly informed. Too often people are expected to act when the accessibility of information is so poor that facts and meanings remain effectively unknown. Technology is a major factor in this regard, notably where people are expected to understand choices when the communication method requires an access to or command of technology that some people simply dont have. For example, many older people are far less informed about their personal finances in modern times because statements and balance information is only generally accessible when a customer looks for it online. Virtually no information is offered from supplier to customer without an extra cost, and this reduces peoples awareness, and therefore the quality of their thinking and decisions. Worryingly this heuristic tendency is exploited to cynical effect by many large corporations, when poor information accessibility combines with other heuristics such as status quo bias. mindlessness. and optimism. to suppress customer complaints and terminations. Properly approached however, accessibility should instead be an strong force for good. Choice architects must ask themselves: How can I maximize the chances of people seeingexperiencing the choices or communications that I am designing for them Consider the what, how, where, when of choices: What: content, supporting facts and figures (consider comparisons and stereotypes ), language, wording, typeface and design, size, format, layout, etc. How: delivered, packaged, available, linked, supported, justified, framed and primed. etc. Where: located, positioned, available, etc. When: available, frequency, repeated, reminded, etc. If you dont know how to improve accessibility, dont guess or assume what will work better. Ask your audiences how to improve the accessibility of messages and choices designed to reach them. 6.5 Likeability - reputation, trust, credibility, honesty, integrity, ethics This issue of reputation, trust, integrity, etc. is mentioned previously in the philosophy and choice architect sections. The likeability of a nudging organization is highly significant . although not given great attention by Thaler and Sunstein. This heuristic factor influences peoples openness or willingness to be nudged . and so it is related to priming. Simply, people are less inclined to respond positively (or at all) to a choice (or nudge) offered by a leaderorganization if the people distrust or dislike the leaderorganization concerned. And certainly if people strongly dislike a leaderorganization then their response is likely to be very negative to communications or choices offered by the leaderorganization. This tendency is commonly seen in peoples thinking about politics, social policies, corporate scandals, etc. It relates to corporate governance. Reputation and trust are heuristic measures applied by people to leaders and also to organizations . The reputation of the leader (and other senior figures) reflects onto the organization. And vice-versa. The reputations and likeability of leaders and their organizations often become blurred into a single feeling. Governments have been brought down by scandals of ethics and dishonesty. So have corporations. These are not failings of service or product, they are failings of attitude and ethics. Yet leaders commonly ignore or underestimate the significance of likeability and trust in how people judge those in authority, and the organizations they represent. People tend to develop feelings of distrust and dislike for leadersorganizations which display or behave with: arrogance duplicity dishonesty evasiveness and other traits of leadership which undermine truthful connections between leaderauthority and audiencesfollowers. The potential for this sort of reputationally damage on leaders and their brandsorganizations has multiplied many times since the emergence of the internet and especially social networking, so that: displaysexamples of bad leadership behaviour very quickly become very visible to potentially millions of people (despite traditional attempts by leaders to suppress media), modern social connectivityself-publishing systems then enable and encourage extremely potent analysis and critical comment by unofficial commentators and ordinary people about misdeeds and wrong words - there is no hiding place - and also, interestingly a major heuristic effect (nudge - namely conforming (following the herd) - further increases public awareness and reaction, ensuring that very large numbers of people form powerful groupings, like a swarm, to produce massive social outcries, which in the modern age can very easily then lead to serious protests, boycotts, civil disturbance or even more dramatic uprisings. Serious negative social reactions can of course be prompted by other organizational failings aside from trust and attitudinal issues - such as product or service failures - but such failings usually result in proportionate audience reactions which build slowly and are easier to predict and remedy whereas reactions to failures of trust (duplicity, dishonesty, greed, etc) tend to produce much deeper quicker uncontrollable audience indignation and outrage, and this is obviously not helpful at all for organizations seeking to maximize audience receptiveness to nudges. 6.6 Relevance - meaningful fit with audience needs, situation, self-image Audiences tend to respond better to situations, choices, communications, etc. that they feel are relevant to their own lives and situations, than to opportunities which are impersonal or seem designed for other people. There are overlaps between this notion and the the Thaler-Sunstein framing heuristic. This relevance heuristic is however more specifically concerned with how well an intervention matches the personal needs, situation and self image of the respondent. Audiences consciously or unconsciously assess how meaningful an intervention (choice, nudge, option, etc) is to their own situation and self-image. We must also consider the audience self-image because this is to a degree flexible. The question of whether and how audience self-image can be changed is mainly addressed via the priming heuristic. The choice architect must ask: Is the communication framed to be personally relevant And more deeply, is the option (choice, nudge) itself personally relevant for the audience People instinctively judge whether a signal and related option fits or feels comfortable. If it does not seem personally relevant, in style and implications, then the person is less likely to act on it. Neglecting this need in people is a common failure in the thinking of authorities, because leaders and policy-makers (who become choice architects) generally do not understand and empathise with their audiences. Audiences commonly joke that irrelevant ill-fitting options are from another planet. The option is irrelevant and ill-fitting because the person who designed it doesnt understand the audience. So there is a great need for choice architects to have empathy for and real knowledge of their audiences - to know what people will consider relevant and fitting - both in terms of the way a choice is presented, and the nature of the choice itself. Leaders need to improve their awareness of the vast differences that usually exist between themselves and the audiences they seek to influence or change, and to take appropriate action: either to develop genuine understanding and empathy for the audience, or to delegate the design of choices and interventions to people who have such understanding and empathy. 6.7 Mood-changers - inspiration, passion, flair, intrigue, humourhumor This range of heuristics, applying to how people feel . is potentially an aspect of framing. but also stands alone as a heuristic which specifically affects the mood of the audience or respondent . This is somewhat different to framing, which generally refers to the styling of the option itself. We might say that: Framing mainly describes the choice or option . whereas Mood-changers (and related motivators) affect the mood of the audience. Framing mainly entails facts, information, description, affecting how people think . whereas Mood-changers (and related motivators) connect with peoples emotions and how they feel . The style or character of an intervention (choice, nudge, communication) can increase the audiences mood of receptiveness and responsiveness. For example, peoples responsiveness is often increased when they are: smiling happy curious amused entertained surprised inspired enthused uplifted and other positively motivating effects on feelings We can all be influenced by the enthusiasm and belief of others. Choice architects should ask themselves: Does the choice design enthuse people Does the communication convey excitement, or some other appealing mood How can the intervention be designed so that people will feel more inclined to engage with it There is a part of most people which responds to inspiration and enthusiasm of some sort and even the most mundane choice can be improved somehow to increase the attention of an audience. 6.8 Fear - thinking driven by risk or threat Fear is an influential thread which to varying degrees runs through many heuristic tendencies in people, notably: Loss aversion Framing Status quo inertia Temptation Mindlessness Self-control strategies Conforming Spotlight effect Limiting Mood-change Fear is certainly exploited widely for cynical purposes by authorities, governments, leaders, and corporations, and has been for thousands of years. Sadly its use can be extremely effective in achieving the aims of the authority concerned. Examples of authoritiesinstitutions which routinely promote and exploit fear in people to achieve the aims of the authority include: Religious organizations - quotYou will go to hellnot go to heaven unless. quot Political movements - quotImmigrants (or some other minority grouping) are taking over your citycountry. quot Governments - quotWe have to wage a war overseas, and increase surveillance on our own society, or terrorists will kill you. quot Corporations - quotYou will not be attractive to the opposite sex unless you buy. quot The abuse of fear is everywhere. We learn from our parents that: quotYou will get a smackbe sent to bedget no pudding unless you behave. quot And we pass this on to our own children. However fear is an important part of life. A lot of natural fear can be helpful, and has enabled the human species to survive, for example the fear of: Lions, tigers, snakes, bears, big spiders, scorpions, etc Things we might eat but which look and smell bad Explosives Sharp or pointed things Heights (falling from a height is life-threatening) The dark (risk to safety increases without light) Strangers (especially behaving inappropriately) But when fear is exploited in a manipulative and cynical way it becomes an unhelpful heuristic or nudge. The message from this to leaders and other choice architects is to avoid exploiting fear unethically. In such judgments the Thaler-Sunstein notion of libertarian paternalism is a useful reference point, and you should understand what is meant by this, or have your own equating ethical standard, before you begin designing choices for people. 6.9 Facilitation - helping people understand and decide, according to their personal needs and thinking processes and responses This is a very sophisticated type of nudge. Its an extension of the Thaler-Sunstein nudges of priming and feedback. It is not described or acknowledged as a heuristic or nudge by Thaler and Sunstein, and is not offered as a part of choice architecture. The concept is however a growing and potentially very significant part of choice architecture. This sort of nudging support is likely to become increasingly popular with the continuing development of computer technology, and especially the artificial intelligence of computer systems with which people engage. A pioneer of this methodology is the American expert and writer on decision facilitation, Sharon Drew Morgen, whose extraordinary Buying Facilitation theory effectively foresaw the Thaler-Sunstein ideas in the 1990s. See Sharon Drew Morgens Buying Facilitation concept, which offers a specific process enabling the application of facilitative support for peoples thinking and decision-making. Morgens main focus in advocating facilitative methodology is towards more helpful and effective business and selling, but the principles and techniques are transferable to any situation where one person or body seeks to help others think and decide, importantly think and decide what is best for the person, not the facilitator, or seller or authority (or choice architect). In a more general sense, these methodologies and principles and are increasingly featuring in the artificial intelligence of human processing systems, so that users, customers, audiences, societies, etc. are offered truly helpful guidance in addressing personal choices. As such the nudging becomes an entire responsive process, which is reactive to individual situation and needs. Much of the Thaler-Sunstein Nudge theory is by its nature universal it offers the same carefully designed choices to very large numbers of people. Whereas the more personally-driven facilitative nudging characterized by Morgens work offers individually responsive choices and feedback, so that people are treated as individuals, rather than part of a large group all of whom are basically treated the same. Central to this level of sophistication is the need to help people understand their own situations . as a crucial requirement before choices are explored and decisions are made . 6.10 Sensory - soundsmusic, smells, touch, colourcolor, temperature, humidity, etc These sensory stimulants can be very powerful influences on human thinking and decisions. This sort of heuristic influence is not specifically identified or categorized as a a type of nudge or heuristic by Thaler and Sunstein. The effects of sensory stimulation - such as smell, sounds (notably music) - on human thinking and decision-making can be very influential. The smell of freshly baked bread in a supermarket tends to increase peoples thinking about bread, and peoples decisions to buy bread. The smell of various foods, especially cooking, increases peoples thinking about eating, and the likelihood that some people will decide to eat something. The sound of certain rhythms and music increases peoples conscious thinking and unconscious feelings about moving, dancing, tapping their feet, etc. and the likelihood that some people will decide to start moving, in time with the music (or not, depending on their sense of rhythm..). Certain songs increase peoples thinking and decisions to start humming, singing or whistling. Certain music evokes different moods, such as sadness, fear, pride, etc. and correspondingly affects peoples thoughts and decisions. Certain music is associated with organized groups or people, which can prompt reactions in thinking and decisions, especially members or enemies of the group - e. g. football clubs, nationalities, religions, armed forces, etc. Sounds and music in media such as film, adverts, documentaries, political broadcasts, can have a powerful effect on peoples thinking, and consequently their decision-making. Being suddenly soaked in water discourages people from being energetic and organized - hence the use of water cannons by riot police. The addition of salt, sugar, fats, and other strong tastes to foods tends to strongly influence peoples reactions to them, which of course in most cases is not a helpful effect. The effect of sunlight and warmth, as opposed to darknessdullness and cold, tends to produce increased positivity in people, and therefore potential amenability and receptiveness towards interventions. (A crowd in the outdoors is more likely to be supportive in fine weather.) Many studies have indicated that when people are exposed to natural green countryside, such as green fields and trees, etc. that this is a more positively conducive environment than being inside buildings and concreteasphalt surroundings. Two tobacco smoking heuristics: 1. The appeal of cigarette smoking is increased by physiological synergy with alcohol consumption, in that alcohol and tobacco taken together increase the chemical pleasure-effect of each. 2. The UK ban on tobacco smoking in pubs strongly contributed to the downturn in pub customer numbers and widescale pub closures, shifting people away from drinking in pubs and into their homes. There are many other sensory stimulants which alter our feelings and thoughts. You will think of plenty that affect you personally. This completes the listing and explanations of (supplementary non-Thaler-Sunstein) heuristic tendencies in people which we might consider to be types of nudges in the context of Thaler and Sunsteins theory and its natural extension. The range of heuristics that are additional to the nudges specifically identified and defined by Thaler and Sunstein is vast. These ideas offered here are not exhaustive. You will discover more. Being more aware of the interventions and situations that affect your own thoughts and feelings will help you identify new heuristics, many of which can equate to nudges. 7. Nudge theory is for everyone to use - anyone can be a choice architect.. Just as anyone can be a leader, so anyone can be a choice architect, and use Nudge techniques to help people towards improving their thinking and decisions. The opportunity to use Nudge theory, like the opportunity to be a leader or use leadership, is determined by what you do . and is not restricted or enabled by your job title or official role. This is especially so if you are already responsible for others in any sense, and obviously more so if you are a manager or parent for example. If you are a leader, manager, supervisor, a teacher, or trainer, or a parent, you are already a choice architect and you can begin using Nudge principles and techniques in the way you engage with your people, and the way in which you help them consider their options and make their decisions. The same applies if you are a businessman or businesswoman, or entrepreneur, or run a part-time business from your home, because your customersclients are your people, and to varying degrees may be helped by your using Nudge theory. And the same applies if you do anything that entails engaging with or helping others, for example, social work, campaigning, research, charity and voluntary work, etc. Even if the only engagement you have with another human being is with a spouse or partner, you can be a choice architect and use Nudge principles and techniques to helpful effect. Nudge theory is also a powerful instrument for identifying, understanding, and modifying existing nudges which are affecting you, or other people you care about, potentially extending to quite large groups, communities or even societies. These nudge influences may be accidental or deliberate, and are often unhelpful, especially if used cynically by corporations or other authorities. 8. How to develop, adapt and use nudge theory Here are pointers, tips and examples of how to develop, adapt, extend, and use Nudge theory. This includes ideas and examples of how to teach, train and coach the principles represented by Nudge theory. And how to relate Nudge theory ideas and optimise their use, alongside complementary models and concepts of motivation, communications, leadership, etc. Nudge theory was originally devised and proposed in the context of behaviouralbehavioral economics (such as pensions and healthcare arrangements), however the Nudge concept can be used in virtually any area of human interaction, for example: leadership and management supervision and teambuilding teaching and training, and education of all sorts coaching and mentoring counselling and mediating government - local, national, international - policy, strategy, processes, materials charitable, voluntary, community sector work self-development parenting working with teenagers and job-seekers working with minorities, disabilities, and people with difficulties sports and fitness coaching healthcare Nudge theory is generally quite easy to use if you appreciate how it works. Nudge theory is not a complex science, but it is quite different to conventional methods of trying to change peoples thinking and behaviourbehavior (which is how mostly we see change-management being attempted by leaders, authorities, corporations, etc. and how we are taught and trained to do it). Conventional methods of changing people use direction and enforcement . often with the threat of punishment . Whereas Nudge theory entails changing peoples environment and choices so they are more likely to make decisions that are helpful and positive (for themselves). In terms of style and emphasis we can equate these two different approaches to Douglas McGregors Theory X and Theory Y. where: X-Theory equates to conventional enforcement . and Y-Theory equates to Nudge . The X-Y Theory model - while used mainly for managing people at work - is very transferable to relationships with people in all situations, and helps convey the fundamental style of Nudge theory . which is one of enablement rather than enforcement . Many Nudge principles (essentially the heuristics, or nudges) will be familiar to you in one way or another, because they have existed for a very long time in a variety of forms, although not previously called Nudge. For example, the concept of brand awareness is largely a based on the Nudge principle called Availability (in terms of familiarity). That is to say, we tend to trust well-known brands because they are familiar to us. The corporations that develop such brand awareness are exploiting the availability heuristic specifically the tendency for peoples thinking to be nudged (and decisions influenced) by familiarity. Such brand owners combine this tactic with use of the following the herd (conforming) heuristic, and probably a few other nudges too, such as the spotlight effect (appealing to peoples heightened sense of self and being judged by others) and framing (by presenting their brandsproducts and services offerings according to peoples desires, fears, sympathies, etc). This illustrates that different types of nudges can be, and are often, used in support of each other. So Nudge theory is a very flexible concept - like a toolkit. Nudge techniques can also be used in combination with other methodologies and theories, for example, with: Nudge theory can be used wholly as an overall entire approach, or elements within Nudge theory can be used individually or in small tactical sets for specific situations. Nudge theory is not a fixed process, or a sequence, although certain elements by their nature are best used at certain times and for certain durations. Nudge theory is not limited or self-contained - on the contrary - Nudge theory is extremely adaptable, extendable, and relatable, so that its methodology - or any part of it - can be developed and used cohesively and supportively alongside lots of other methodologies, theories and techniques. Note again that Nudge theory can also be used to identify, assess and modify existing nudges, which may be accidental or intentional choices offered by authorities and corporations, and which produce unhelpful effects and decisions for people. This retrospective use of Nudge theory - as an analytical and improvement methodology - can be useful in relatively small groups, and potentially for very wide-scale societal situations, for example political lobbying and campaigning designing educational and social improvement programs project management and trouble-shooting mediation, diplomacy, peacemaking, etc. For ease of use, the table below includes brief descriptions and links to bigger explanations of the Thaler-Sunstein nudge types, together with concepts which support or assist the use of the nudges concerned. The Nudge theory toolkit offered below is a simple guide to how different heuristic tendencies in people can be used to design helpful choices. The toolkit comprises: the main nudges identified by Thaler and Sunstein. based largely on the Kahneman-Tversky work major supplementary heuristics which exist relative to Thaler-Sunstein Nudge theory, and guidance for usage and complementary theories, models, etc. 8.1 Nudge theory toolkit This table is a listing of the Thaler-Sunstein nudges, and of some significant supplementary nudges, which are not specifically identified and defined by Thaler and Sunstein. The table shows the numbered items for this table, and also the index numbers for these items in this article. The toolkit offers: names and brief descriptions of each nudge, linked to the fuller descriptions usage examplesguidance of how to use each nudge, and methodstheories to use with each nudge for understanding, teaching, and applying the nudge. nudge theory toolkit Nudge theory is typically an indirect approach . which alters situations for people, so that choices are designed which produce options for helpful voluntary changes in people . Conventional change-management entails: forceful interventions directed at the person or group whose change is sought Whereas Nudge theory typically entails: the design of voluntary choices directed at the situations in which people exist Nudge theory is focused on changing peoples environment, andor the choices people face, rather than the people directly, on the basis that people have the opportunity to change in response to the new choicesenvironmental situation that they experience. Nudge theory must be based on: free choice, and beneficial outcomes for people. 8. Summary 1. Nudge theory was originally developed for behavioral economics in 21st century USA, being the main interest of American economists Richard Thaler and Cass Sunstein, authors of the 2008 book Nudge - Improving Decisions about Health, Wealth and Happiness, which named, defined and popularized the Nudge concept. 2. Behavioral economics refers to the interaction between society and economic systems, notably, pensions, investing, and healthcare. 3. Nudge theory is adaptable and applicable very widely beyond behavioral economics to all aspects of engaging with people - for example parenting, teaching, managing, marketing, service provision, leading and governing. 4. The use and teaching of Nudge theory should be underpinned by a positive ethical philosophy, which its authors call Libertarian Paternalism, in which the priorities are: designing free choices for people, to enable better thinking and decisions, for the well-being of those people, society and the planet rather than (traditional corporategovernment methods entailing): enforcedimposedmanipulative influence of people for the enrichment of corporations and wealthypowerful folk who lead and own them, or for the consolidation of authority, and then protectionreinforcement of governing bodiespeople. 5. The 2008 Nudge book and theory are strongly based on heuristics - which the authors equate to nudges - and which are (in terms of Nudge theory) a variety of factors which cause people to think and decide instinctively . rather than logically. 6. Much of the heuristics theory in the Nudge book is based on pioneering work of Israeli-American psychologists Daniel Kahneman and Amos Tversky, dating back to the 1970s. Their work on human thinking and decision-making is highly significant in the study of human thinking, and has a broader perspective than behavioral economics. Kahneman won the Nobel prize for economics in 2002 for his work with Amos Tversky (who, having died in 1996 did not receive a posthumous award, and so is often unfairly neglected in attributions, etc). 7. For most of humankinds existence the ability to think heuristically (AutomaticSystem One ) has been very advantageous, and so has become a highly developed intelligence in modern humans. Used appropriately, heuristic thinking saves time, enables effective group cooperation and cohesion, and produces good decisions. However in certain situations (behavioral economics for example) these heuristics often cause people to make irrational unhelpful decisions. Also, in the modern world, societies and the wider environment are increasingly open to exploitation and abuse by corporations and governments, which increases humankinds vulnerability to mistaken actionsdecisions borne of heuristic thinking. 8. Nudge theory proposes that these heuristic tendencies can be approached deliberately to encourageenable helpful thinking and decisions (where existing thinkingdecisions are unhelpful), and that this is a more effective way of shifting group behaviourbehavior than by traditional enforcement, instruction, threat, laws, policies, etc. 9. Where these natural human heuristic tendencies are not understood, or are manipulated cynically (by authorities or corporations), peoplesocieties are prone to act and decide unhelpfully (for people and society), for example: wasting resources, failing to manage money, getting into debt, eatingdrinking unhealthily, losing hope and self-esteem, resorting to mob behaviour, victimizing less fortunate people, buying daft products and services, resorting to crime, becoming dependent, creating pollution and mess, etc. 10. Governments traditionally seek to correct such behavioursbehaviors by direct instruction, enforcement, threat, punishment, etc. and this ty pically fails, or makes matters worse. 11. Nudge theory offers a way to more successfully shift group behaviour: via heuristics, which is how people really think and make decisions. 9. Glossary of terms - nudge theory and related concepts This glossary offers definitions of Nudge theory and related terms, and also offers a quick way to grasp the essential concepts of Nudge theory, and how it relates to and can be used alongside other models and broader disciplines. Many of these terms have wider or slightly different meanings outside of Nudge theory. Clarifications of these wider meanings are in the business dictionary. Accessibility - Accessibility is a supplementary heuristicnudge which refers to the efficiency of the communicationintervention, i. e. the extent to which the audience seesexperiences it, and the number of times the audience seesexperiences it. We can equate this to reach. which is a marketing term. The principle is simply that regardless of how clever the communicationintervention itself is, if only 10 of the audience actually seeexperience it, then it will not work well, and certainly not nearly as well as the same intervention which achieves a reach of 100 to the audience, multiple times. This is similar to the Thaler-Sunstein availability heuristicnudge, but definitely not the same thing. Anchoring and Adjusting - Anchoring and Adjusting is a primary heuristic or nudge identified by Kahneman and Tversky, and is featured in Nudge theory by Thaler and Sunstein. Anchoring and Adjusting might instead be called comparing then guessing. Its a common quick method of approximating or estimating an unknown quantity, extent, or characterdescription, of something unknown, by using a perceived similar known reference as a basis for the guess. Audience - A group of people. This is a general marketing term. Usually it means a group which receives a communication or experiences an intervention of some sort. Nudge theory aims to design and offer new choices to a group of people. These people are sometimes called the audience. Automatic systemAutomatic thinking - Thaler and Sunsteins term for natural human thinking, which is often irrational, instinctive and unhelpful for the people thinking in such a way, as opposed to Reflective or System Two (Kahneman-Tversky) thinking: Automatic (System One) thinking Human, instinctive, emotional, subjective, irrational, heuristic Reflective (System Two) thinking Econ, logical, rational, objective, unemotional Availability - Availability is one of the primary heuristics or nudges identified by Kahneman and Tversky, and is featured in Nudge theory by Thaler and Sunstein. Availability refers (rather misleadingly) to the perceived popularity or rarity of something . which is significant in peoples (heuristic, unreliable) assessment of its credibility, level of threatopportunity, social acceptance, etc. An alternative broad name for this heuristic or nudge is visibility or commonness. Bias - This term features often in Nudge theory, for example in Satus quo bias. Bias means weighting or leaning to a particular view or behaviour. Other words which equate to bias are spin, inclination, and preference. When thinking has a bias or is biased towards something then it is not balanced or truly objective or neutral. The common existence of bias in peoples thinking is a central aspect of Nudge theory. Choice - A situation or intervention which people face, and which may lead to helpful or unhelpful decisions, or no decision. Choice Architect - a person or organization whowhich uses Nudge theory to design choices for people. Conventionally this function is often called change management. Choice Architecture - Thaler and Sunstein use this term to refer to the (large but not all-embracing) heuristic area of Stimulus Response Compatibility. and this usage is not fully consistent with their term choice architect, which refers to role of a personleaderauthority who uses the (all-embracing) entire range of heuristics in designing choices for people. So this term has two meanings: namely Stimulus Response Compatibility. or more broadly a systemstructure of choices designed for people, in the course of applying Nudge theory. Choice design - A central idea and expression of Nudge theory, referring to the principle and methodology of developing and offering situations or interventions for people, from which people are free to select whichever option they prefer, including the option to make no decision at all. Choice design is typically done by a choice architect, but may also refer to choices which exist through accident or circumstance, or from cynical purpose, like lots of marketing and advertising, and processes (increasingly online) or contractual smallprint designed to fool consumers. Clean Language - Not a Thaler-Sunstein term, but a methodology that is very relevant to Thaler-Sunstein and Nudge ideas - specifically that the way communications are worded can dramatically affect the way that meanings and moods are perceived. See Clean Language. Conforming - An alternative term for the following the herd heuristic, and separately a general tendency for people to prefer to adhere to norms rather then stand alone. Conforming is a survival instinct because it aligns oneself with a group, avoiding confrontation and risk. Conforming also produces mutual feelings of affirmation, and a feeling of safety through strength in numbers. Its an enormously significant aspect of humangroup behaviourbehavior, without which there could be no wars, no religion, fashion industry, football fans, etc. Delayed gratification - Not a Thaler-Sunstein term, but a crucial aspect of temptation, or more precisely the resistance of temptation. The inability to delay gratification produces the human weakness in succumbing to many types of temptation. Even lazinessinertia is a sort of inability to delay gratification, where gratification equates to rest and relaxation. Default - This refers to the effective optionoutcome where no action or decision is taken. The concept of default is a crucial aspect of Nudge theory, specifically equating to opting for the status quo or inaction, or no decision at all. Any of these things can, according to choice design, be helpful or unhelpful options. Default is what happens when the box is not checked. Since people very commonly default to inaction, or make no decision or change, the option that the leadershipauthority or corporation assigns to no decision or default is seriously crucial. This is why opt-in and opt-out are such important aspects of policy and law in matters of audience response. A real example of this heuristic being used to powerfully good effect is seen in the several nations who in the 21st century altered the default option from No to Yes on individual health forms requesting permission for organ donation in event of death. When the default (checkbox left blank) was changed to mean Yes instead of No those nations saw dramatic increases in organ donations, resulting in thousands more saved lives. Design of choice - See choice design - it means the same. Design here refers to writing communications, creating other types of signals and interventions based on the heuristics explained, and the formulation of bigger strategic engagements between a choice architect organization and its audience, all of which equate to using Nudge theory to offer helpful options to people that are easy for people to understand and adopt. Econs - Thaler and Sunsteins term for the imaginary people whom most leaders and politicians believe typify society i. e. people whom leaders and governments imagine think like economists, whereas most people in society think like humans - i. e. with very natural heuristic weaknesses. (Largely non-existent) Econs think logically, rationally, unemotionally, always correctly and rationally, whereas (in reality the highly prevalent) humans think emotionally, instinctively, irrationally, and often wrongly. Empathy - Empathy is a big subject within communications, relationships and leadership which features strongly in Nudge theory and certain heuristics where the mood, personality and needs of the audience are significant. Empathy is significant in the supplementary heuristic sympathy. Facilitation - Facilitation is a supplementary nudge or heuristic which extends the Thaler-Sunstein notions of feedback and priming. Its a sophisticated and deep concept, by which people are helped to think and decide, based in personalised feedback at suitable stages before and during a process of engagement. Fear - Fear is a supplementary heuristicnudge that is frequently referenced by Thaler and Sunstein, but never actually defined or categorized as a heuristic or nudge, aside from being a factor within other named heuristics, notably loss aversion. Obviously fear can be a substantial influence on thinking and decision-making, and it is often exploited cynically and unethically by people and organizations seeking to control others. Fear is however a helpful heuristic in many situations, for example in guiding peoples thinking and decisions in relation to fast-moving traffic, stormy seas, bad-smelling food, guns, knives, etc. So fear is also used in shifting group behaviours for example persuading people that tobacco smoke and obesity can be dangerous to health, etc. If not abused, the fear heuristicnudge can certainly be potentially very helpful. Feedback - Feedback refers to the responsesreactions given by the choice architect organization or system to the audience during and after thinkingdecisions, enabling adjustment and useful experience. Feedback is shown in this article as a nudge and individual heuristic, although Thaler and Sunstein categorize feedback more vaguely, as part of choice architecture. In fact feedback overlays potentially many other heuristics and nudges. A more sophisticated type of feedback is the additional (non-Thaler-Sunstein) nudge in this article called Facilitation. Following the herd - Following the herd is a Thaler and Sunstein nudge which basically means conforming to a group view or behaviourbehavior. This may be due to the need to be affirmedvalidated to feel powerful (strength in numbers), or the attraction of being part of mob rule. There are other causes, and this is a very significant heuristic in group and societal behaviour. It relates to the spotlight effect. Framing - Framing is a Thaler-Sunstein nudge which refers to the way that a communication or intervention is styled and orientated, particularly in relation to the respondentaudience needs and interests, etc. This entails styling aspects such as accentuation of positivenegative, presentation of advantagedisadvantage, recommendationdissuasion, endorsement, aspiration, etc. Traditionally, sales people whom were said to have the gift of the gab or a silky tongue would have been good at framing an option, so as to increase its attractiveness to the potential client. Heuristicsheuristic - In the context of Nudge theory, heuristics broadly refers to the various internal references and responses which people use in assessing things, developing views, and making decisions. Thaler and Sunstein equate a heuristic to a nudge. The word heuristics basically means self-discovery (from Greek heuriskein, find). By its internal nature, heuristic thinking tends to be personal, emotional, subjective, and instinctive. Thaler and Sunsteins approach to heuristic thinking is that it is generally responsible for faulty judgment and unhelpful decision-making. Grammatically, the word heuristic may refer to a single thinking tendency, or may act as an adjective. The word heuristics may be plural in referring to more than one heuristic thinking tendency, or may be singular in referring to the studytheoryscience of heuristics. Heuristicsheuristic outside of Nudge theory refer to a more general sense of learning through self-discovery. Humans - Thaler and Sunsteins term for the real people who largely represent societies, and who think heuristically (irrationally, emotionally, often wrongly), about whom most leaders and politicians are basically ignorant or oblivious, believing instead that societies are populated by logical rational Econs. who supposedly think rationally and logically. Inertia - Inertia means unchanging. This is a very significant aspect of human decision-making, and of group behaviourbehavior. Inertia relates to defaults and status quo. Inertia specifically refers to the tendency for people and groups do do nothing when faced with choices that are difficult to understand or which seem to offer threat or disadvantage. Inertia is a Input - An alternative word for an intervention. Not a specific Nudge theory term, but a useful word in describing any sort of intervention. Intervention - A very useful term, referring to any sort of input or communication or alteration of situation by a choice architect. Intervention is not specifically a Nudge theory word its used in most fields concerning relationships, education, management, training, communications, counselling, etc. Likeability - Likeability is a supplementary heuristicnudge which refers to the reputation and credibility of the choice architect (or the choice architect organization, or figureheads and leaders which are associated with the intervention or nudge). This heuristic acts on the simple principle that an audience is less likely to engage with and respond to an intervention if they do not respect or like the source of the intervention. This obviously applies to interventions where the audience is aware of the source of the intervention or choice architect (sometimes interventions are perceived to be quite anonymous). Within this heuristic, likeability is subjective (i. e. different audiences like different leaders and organizations), and reputation is relative . i. e. the source must be seen as relevantly credible for the type of intervention (e. g. we might be more influenced by a book about ethics written by the Dalai Lama than Tony Blair, but conversely we might be more influenced by a book about becoming a Roman Catholic or accumulating a multi-million dollar fortune by Tony Blair than the Dalai Lama). This heuristic relates to several others, notably framing. priming. and sympathy. Limiting - Limiting is a supplementary heuristicnudge referring to human tendencies to desire something more if it is perceived to be in short supply, or its availability is subject to time limit or expiry. Loss aversion - Loss aversion is a Thaler-Sunstein nudge, originally identified by Kahneman and Tversky. Loss aversion refers to the heuristic tendency that people value something more when they possess it than when they do not. This produces a resistance to change (inertiastatus quo bias) if a change is proposed or faced that threatens to deprive the person of a possession, or a current position. The driving force in this heuristic is a heightened sensitivity to, or exaggeration of risk . The Loss aversion nudge is an opposite effect to optimismover-confidence. MaslowAbraham Maslow - The work of motivational theorist Abraham Maslow (1908-70), helped to lay the foundations of Nudge theory in the mid 1900s its mechanismsheuristics and ethosphilosophy. Maslows famous Hierarchy of Needs model is effectively a presentation of the most fundamental human heuristics, which provide many of the ultimate driving forces behind the heuristics identified by Thaler and Sunstein, and Kahneman and Tversky. Maslow was also a strong libertarian who argued that corporate and managerial power was a damaging feature of society in suppressing peoples free choice and natural potential. Mindlessness - Mindlessness is a Thaler-Sunstein nudge which equates to negligence, avoidance, not concentrating, etc. When people make mistakes called human weakness this is often mindlessness. The effect may be prompted or increased when the brain is tricked by some sort of illusion or technique of semiotics. Where communicationsinterventions are poorly designed, mindlessness can be a major factor in large group-wide poor thinking (not actually thinking properly) and poor decision-making (especially deciding to do nothing, or not realising that a decision should be made). Moodmood-changers - Mood is a significant aspect of heuristics, because it governs how people feel, and this influences how people respond to interventions. Peoples moods are subject to change, and so its useful for choice architects to to appreciate this and to allow for peoples moods and emotions as far as possible. Transactional Analysis and NLP are helpful supporting methodologies. Mood-changers are a supplementary heuristicnudge which refer to interventions which alter how people feel and ideally inspire, amuse, enthuse, and intrigue them, because these feelings tend to increase engagement and receptiveness, as well as reducing feelings of fear, stress, pressure, isolation, low-self-esteem, etc. which tend to hinder peoples engagement and clear thinking. Neuro-linguistic ProgrammingNLP - NLP is a commonly used abbreviation for Neuro-linguistic programming. NLP is a powerful psychological concept alongside Nudge theory, like Transactional Analysis. Like TA, NLP explains and offers ways to interpret and manage the (often hidden and counter-intuitive) effects of communicationssignals to and between people. NLP is not specific Nudge theory terminology or methodology, but the NLP concept relates to Nudge theory and supports it very well. Nudge - Thaler and Sunsteins brand name for a heuristic effect which influences a person or groups thinkingdecision-making. Thaler and Sunstein actually equate the notion of a nudge to a heuristic tendency, so that the words mean virtually the same. Technically such a direct equivalence is a little tenuous given that conceptually heuristics are rather a passive and a constant tendency, compared to a nudge, which is may be an intentional intervention, but the basic understanding of nudge theory is probably made easier by seeing these two words as essentially meaning the same thing. OptimismOver-confidence - Optimismover-confidence is a Thaler-Sunstein nudge and refers to peoples heuristic tendency to under-or over-estimate the ease or difficulty of situations leading to complacency . which inevitably influences thinking and decisions. This heuristic was originally identified by Kahneman and Tversky. Optimismover-confidence has an opposing effect to the Loss aversion heuristic. which tends to restrict thinking and decision-making. Opt-inOpt-out - Opt-in means check the box to agree to sign-up or join, etc. Opt-out means the default is you are in unless you check the box to say you are not. Positioning - Positioning - is a supplementary heuristic or nudge which refers to the location or relocation of anything which influences peoples thinking or behaviour, for example the site of a notice-board, or a litter-bin, or the layout of headings on a poster or document or webpage. Thaler and Sunstein refer to the effects of positioning but do not categorize it as a specific heuristic or nudge. In this article a supplementary or additional nudgeheuristic is one which Thaler and Sunstein do not specifically categorize and name as such, although they may refer to its effects and existence to or degree or another. Priming - Priming is a Thaler-Sunstein nudge referring to ways in which people can be made ready or prepared before thinking and deciding, for example, visualization, role-modelling, building belief, educating, giving information before options, and offering methods rather than directions. Like feedback it extends to the more sophisticated notion of Facilitation. Reach - This is a marketing term thats useful in understanding certain aspects of Nudge theory. Reach refers to the extent of a target audience which seesexperiences a communication or intervention (which may be used to apply a nudge). Reach is significant in all communications designed to impact on a group, because if the reach is only 50 (i. e. only half the audience sees the message), then generally this is the actual maximum response rate. Its very difficult to achieve 100 reach of course, but its not difficult to achieve a 75 reach compared to say a 25 reach, in which case the potential success rate is multiplied by three times. Such an example illustrates that reach is hugely significant in determining success of group interventions. In other words, the intervention may be fabulous, but if the reach is only 10 then the results will be relatively poor. Recipient - A general term, not specific to Nudge theory, which refers to a single member of an audience or target group or society, that is subject to a communication or intervention. When we talk to another person, the other person is the recipient. An alternative term is respondent. Reflective system - Thaler and Sunsteins term for rational logical thinking, equating to Kahneman and Tverskys System Two thinking, as opposed to Automatic (Thaler-Sunstein) and System One (KahnemanTversky): System One (Automatic) thinking Human, instinctive, emotional, subjective, irrational, heuristic System Two (Reflective) thinking Econ, logical, rational, objective, unemotional Relevance - Relevance - is a supplementary heuristicnudge which refers to how well the intervention fits the needs of the audience. This is different to sympathy which mainly concerns fitting the mood and personality of the audience. Relevance requires that the option for the audience is seen as meaningful by the audience. Representativeness - Representativeness is a Thaler-Sunstein nudge originated by Kahneman and Tversky. It refers to similarity and relies largely on stereotyping . so that when people seek to assess or characterize an unknown thing or option they tend to refer to perceived stereotypical examples, on which they base assumptions about the unknown thingoption, and which may be very inaccurate. This heuristic is greatly influenced by mass media, which is responsible in the modern age for proliferating millions of stereotype references, on which people form faulty assumptions and decisions. Respondent - An alternative term for recipient. Basically a respondent is the person who receives a communication or intervention. The term is a general one and not specific to Nudge theory. Rule of thumbrules of thumb - This term is used by Kahneman and Tversky, and also by Thaler and Sunstein, in referring to a heuristic or several heuristics. The term is used quite vaguely. Thaler and Sunstein initially use the term in referring to the Kahneman-Tversky heuristics (first identified) Anchoring, Availability and Representativeness, but imply it has a wider meaning. Kahneman and Tversky use the term to refer to heuristics more broadly. Its probably more accurate to suggest that rulerules of thumb is a general substitute term for the heuristics which entail some sort of instinctive comparison, calculation, or assumption based on a preconception. Self-control strategies - Self-control strategies is a Thaler-Sunstein nudge which refers to the many routines and habits that people develop to counter their known or perceived weaknesses. Common examples are seen in the ways that people manage money, and devise quirky methods to save, budget, and transfer money (from various accounts, jars and pots, savings funds, etc). A different example is the tendency for many people to put alarm clocks out of reach (because they know they have a temptation to switch them off and go back to sleep). These unnatural routines become part of the reality that influence thinking and decisions in response to communications and interventions. Self-image - Self-image is a general term in psychology and relationships, empathy. etc. not specific to Nudge theory, but is especially significant in heuristics concerning relevance and framing. Its a crucial aspect of communications and interventions which is often overlooked, as follows: Authoritiesleaders design interventions and communications based on the personalities and moods that they believe people have, whereas usually peoples personalities and moods are quite different. Therefore interventionscommunications are inappropriate or irrelevant, quite aside from the contentpurpose of the intervention. People dont recognize the intervention to be relevant or meaningful in terms of their self-image. Principles of empathy offer ways to understand self-image. Semioticssemiology - Semiotics refers to making and analysing meaning through signs, language, symbols, stories, and anything else that conveys a meaning that can be understood by people. This is not specific Nudge terminology its an entirely separate and major area of communications. Semiotics is however hugely significant in Nudge theory, and especially the heuristic called Stimulus Response Compatibility. Semiotics is relates to linguistics, which refers to language structure and meaning. Semiotics more broadly encompasses language and all other signage, metaphor and symbolism. The processing aspect of semiotics is called semiosis. Semiotics comprise a logical elements, and anthropological humankind elements, which is to say that the effects are partly based on unchanging logic (for example big is generally more impactful than small), and partly based on human factors such as genetics, evolution, culture, and conditioning. Sensory - Sensory nudges are supplementary heuristics in terms of Thaler-Sunsteins listing, which basically ignores these effects. Sensory influences besides traditional semiotics (language, symbols, signs, etc) can be immensely influential on peoples thinking and decision-making. Consider for example: the effect of music in films and other media, and on peoples moods and decision-making when partying the effect of smells such as freshly baked bread and coffee or antiseptic, or bleach, or petrol, or tobacco smoke. Or the effects of heat and cold on peoples bodies and moods, or of dampness, humidity etc. There are hundreds of other sensory stimulants which can be regarded and potentially used as sensory nudges. Signage - A general non-Nudge term which is useful in Nudge theory in referring to visual signals which convey a meaning of some sort to an audience, for example colourscolors, symbols, graphic design, headings, visual media, layouts, signposts, notices, etc. Signal - Signal means a communication or other sort of non-verbal sign or conveyance of meaning or mood to a person or group. Signal is not specific Nudge theory terminology, but it is very useful in explaining Nudge theory, because signal has such a wide meaning of different types of messagesinfluences that humans are receptive to. Changing the colourcolor or size or typestyle of text is a signal. So is direct eye contact, or repositioning a litter-bin. Signal broadly equates to the word intervention. Spotlight effect - Spotlight effect is a Thaler and Sunstein nudge which refers to peoples anxiety when they feel isolated, as if being watched and judged by others. This produces pressure and a heightened fear of making errors, typically producing inertia or conforming (following the herd). Thaler and Sunstein assert that people have a false sense of self-significance when making these judgments, so that they can greatly exaggerate the significance and visibility of their actions and decisions. Status quoStatus quo bias - Status quo bias is a Thaler-Sunstein nudge which equates to inertia. and the default option (i. e. what happens when the respondent takes no action, like not checking the box). Status quo bias is a hugely powerful effect, and much exploited by corporations and much under-regulated by protective authorities. Its basically why we receive so much junk mail, emailtext spam, and unwanted marketing phone calls - because authoritiesgovernments traditionally permitted corporations to assign an opt-in agreement, which committed consumers to receive follow-up mailings, and have their details sold to other corporations, when people divulged personal contact details on forms when buying things. Status quo refers to the existing situation. A Latin term. status quo means literally situation in which. Almost always status quo means preserving the existing situation, and this is its meaning in Nudge theory. This is similar to inertia. and is related to defaults. Stimulus Response Compatibility - Stimulus response compatibility refers to the design of signage and language, so that it looks and seems appropriate for the message it conveys. For example, a red X symbol generally conveys a meaning of no or stop or negative, and a green check or tick generally conveys a meaning of yes or positive, so to use a red X with the word yes or go would be heuristically misleading and unhelpful (i. e. the stimulus of the red X does not match, is not compatible, with the audience response, which would tend to be negative rather than positive). See the amazing weird colour trick for another illustration of Stimulus Response Compatibility. Stimulus Response Compatibility is a technical term and concept within heuristics that Thaler and Sunstein feature strongly within Nudge theory. Stimulus Response Compatibility is shown in this article as a nudge and heuristic, but Thaler and Sunstein refer to it more vaguely as part of or equating to choice architecture, which is a little misleading given that a choice architect may use all available heuristics, some of which do not entail stimulus response compatibility. It is perhaps easier, as this article suggests to consider that stimulus response compatibility is a heuristic in its own right, and also that it overlays many other heuristics and nudges. Supplementaryadditional nudges and heuristics - In this article a supplementary or additional nudgeheuristic is one which Thaler and Sunstein do not specifically categorize and name as such, although they may refer to its effects and existence to a degree. Some are not mentioned or alluded to by Thaler and Sunstein, but have been discussedproposedimplied by other theorists with interests in what might be terms Nudge theory heuristics. Sympathy - Sympathy is a supplementary heuristicnudge which refers to the ease of engagement that an audience feels for an intervention - in other words is the intervention sympathetic to the mood and personality of the audience Is the communication in-tune and resonant with the audience. Self-image is often a factor. So is empathy. Syntacticssyntax - the studyscience of the arrangement of words within language (i. e. syntax) and especially within sentences which seek to convey clear meaning. Derived from from Greek, suntaksis, from sun, together, taksis, arrangement, from tasso, I arrange. System OneSystem Two (thinking) - These terms were originated by Kahneman and Tversky in referring respectively to the two main types of human thinking in heuristics, which Thaler and Sunstein call Automatic (System One) and Reactive (System Two). System One (Automatic) thinking Human, instinctive, emotional, subjective, irrational, heuristic System Two (Reflective) thinking Econ, logical, rational, objective, unemotional Temptation - Temptation is a Thaler-Sunstein nudge, referring to human tendencies to seek maximum reward for minimum effort. Other drivers of temptation include greed, ego, insecurity, desperation, etc. although Thaler and Sunstein argue reasonably that this heuristic is a natural urge in humans, which has evolved due to it being mostly a successful tendency, although is a vulnerability in the modern age, or at any time where it can be used as a trap. Temptation - and the tendency for people to succumb to temptation - relates to delayed gratification. and the dilemma that this offers to many people. Transactional AnalysisTA - Commonly abbreviated to TA, Transactional Analysis is a potent and (despite its complex confusing name) highly accessible and useful communications theory. TA is not referenced specifically within Thaler and Sunsteins Nudge theory, but TA potentially enables very good appreciation and application of aspects of Nudge theory, as well as being a powerful model in its own right for personal growth, organizational development, interpersonal changeimprovement, and all human relationships too. TA explains much of why humans so often react to communications and interventions on an emotional level. authorshipreferencing copy Businessballs 2013-14. Nudge theory concept Thaler amp Sunstein. Nudge theory terminology Thaler-SunsteinKahneman-Tversky.

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