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Nudge and the Manipulation of Choice 3 EJRR 1|2013 Nudge and the Manipulation of Choice 3 Nudge and the Manipulation of Choice A Framework for the Responsible Use of the Nudge Approach to Behaviour Change in Public Policy Pelle Guldborg Hansen* and Andreas Maaløe Jespersen** https://doi.org/10.1017/S1867299X00002762 . In Nudge (2008) Richard Thaler and Cass Sunstein suggested that public policy-makers arrange decision-making contexts in ways to promote behaviour change in the interest of individual citizens as well as that of society. However, in the public sphere and Academia alike widespread discussions have appeared concerning the public acceptability of nudge- based behavioural policy. Thaler and Sunstein’s own position is that the anti-nudge posi- tion is a literal non-starter, because citizens are always influenced by the decision making context anyway, and nudging is liberty preserving and acceptable if guided by Libertarian https://www.cambridge.org/core/terms Paternalism and Rawls’ publicity principle. A persistent and central tenet in the criticism disputing the acceptability of the approach is that nudging works by manipulating citizens’ choices. In this paper, we argue that both lines of argumentation are seriously flawed. We show how the anti-nudge position is not a literal non-starter due to the responsibilities that accrue on policy-makers by the intentional intervention in citizens’ life, how nudging is not essentially liberty preserving and why the approach is not necessarily acceptable even if satisfying Rawls’ publicity principle. We then use the psychological dual process theory underlying the approach as well as an epistemic transparency criterion identified by Thaler and Sunstein themselves to show that nudging is not necessarily about “manipulation”, nor necessarily about influencing “choice”. The result is a framework identifying four types of , subject to the Cambridge Core terms of use, available at nudges that may be used to provide a central component for more nuanced normative con- siderations as well as a basis for policy recommendations. 26 Sep 2021 at 18:53:45 I. Introduction ought to be, from the perspective of rationality, ir- , on relevant features of the decision-making context. In the last three decades, advances in behavioural In general, these behavioural insights teach us how economics and psychology have revealed how our decision-making contexts may systematically lead 170.106.40.40 decision-making and behaviour are systematically us to fail in acting on our well-informed intentions biased by the interplay of psychological with what or achieve our preferred ends. In the area of public policy-making, particularly, such advances teach us . IP address: how neglecting these insights may be responsible for * Director of The Initiative for Science, Society & Policy (ISSP); In- failures of public policy to reach intended effects, and stitute for Marketing & Management, University of Southern Den- why paying more attention to them seems likely to mark. provide a key to dealing effectively with important ** The Initiative for Science, Society & Policy (ISSP). The authors would like to thank two anonymous reviewers at EJRR societal challenges such as global-warming, obesity as well as Prof. Robert Sugden (UEA), Prof. Bent Greve (RUC) and epidemics, and poor economic decision-making. John Parkinson (Bangor University) and colleagues from the Insti- tute for Marketing and Management (SDU) who all have provided The seminal book that brought the idea to a helpful comments and question. https://www.cambridge.org/core broader audience was Nudge: Improving Decisions Downloaded from EJRR 1-2013 Inhalt.indd 3 26.02.2013 09:41:06 4 Nudge and the Manipulation of Choice EJRR 1|2013 About Health, Wealth and Happiness,1 written by be- “nudging” in public policy-making have been of vary- havioural economist Richard Thaler and law scholar ing success, but overall seem promising.12 Cass R. Sunstein. In their book, Thaler and Sun- However, this new undertaking in behavioural stein suggested that public policy-makers and other change has not always been met with enthusiasm. choice architects arrange decision-making contexts Both academics and public commentators have lev- in ways to promote behaviour that is in our own, eled harsh criticism – political, practical, and ethical as well as society’s general interests. The proclaimed – against the approach. In the UK, the libertarian advantage in doing this is that public policy-makers blog Spiked featuring a series of liberal academics https://doi.org/10.1017/S1867299X00002762 . might influence – in a cheap and effective way – our has even gone as far as declaring “war on nudge”.13 everyday choices and behaviours without recourse to injunctions or fiddling with incentives. That is, “nudging” seems to offer policy-makers an effective 1 Richard Thaler and Cass Sunstein, Nudge – Improving Decisions about Health, Wealth and Happiness (New Haven, CT: Yale Uni- way to influence citizens’ behaviour without restrict- versity Press 2008) ing freedom of choice, imposing new taxations, or 2 Richard H. Thaler and Cass R. Sunstein, “Libertarian Paternalism tax-reliefs. Thaler and Sunstein have coined the is not an oxymoron”, 70 The University of Chicago Law Review seemingly oxymoron term, “Libertarian Paternal- (2003), pp. 1159–1202. ism”,2 which characterizes the attractive regulation 3 Paul Dolan, Michael Hallsworth, David Halpern et al., “MIND- SPACE – Influencing behaviour through public policy. Institute for https://www.cambridge.org/core/terms paradigm that arises out of the “nudge approach” to Government”, 2010, available on the Internet at: <http://www. behavioural change in public policy-making, when instituteforgovernment.org.uk/publications/mindspace> (last ac- cessed on 09 January 2013) enacted to serve the interests of the citizens as these 4 Cabinet Office Behvioural Insights Team. Behavioural Insights Team are judged by themselves. Annual Update 2010–2011, 2011, available on the Internet at: Four years later, the nudge approach has achieved <http://www.cabinetoffice.gov.uk/resource-library/behavioural- insight-team-annual-update> (last accessed on 09 January 2013). widespread recognition in two of the largest West- 5 Oliver Oullier and Sarah Sauneron, “‘Green Nudges’ new incen- ern democracies. Until recently, Sunstein was an ad- tives for ecological behaviour”, 2011, available on the Internet at: visor on regulatory affairs for US President Barack <http://www.strategie.gouv.fr/en/content/policy-brief-216-nudges- green-new-incentives-green-Behaviour-march-2011> (last accessed Obama. Thaler is an advisor for UK Prime Minister on 09 January 2013). David Cameron’s Behavioural Insights Team (BIT), 6 Brigitte Piniewski, Cristiano Codagnone and David Osimo, “Nudg- popularly referred to as the “Nudge-unit.” These ef- ing lifestyles for better healtlh outcomes: Crowdsourced data and persuasive technologies for behavioural change”, 2011, available forts have led to the production of a series of reports on the Internet at: <http://ipts.jrc.ec.europa.eu/publications/pub. and discussion papers aimed at public policy-mak- cfm?id=4219> (last accessed on 09 January 2013) 7 Edmund L. Andrews, “Obama Outlines Retirement Initiatives 2009”, , subject to the Cambridge Core terms of use, available at ers. The UK Institute of Government has published 3 available on the Internet at: <http://www.nytimes.com/2009/09/06/ the MINDSPACE report in 2010, drawing heavily us/politics/06address.html?_r=1> (last accessed on 09 January on the nudge approach; through the UK Cabinet 2013). Office, BIT has published the first, “Behavioural In- 8 James Surowiecki, “A Smarter Stimulus”, 2009, availa- 4 ble on the Internet at: <http://www.newyorker.com/talk/ sights Team Annual Update 2010–2011”; the Cen- financial/2009/01/26/090126ta_talk_surowiecki> (last accessed tre for Strategic Analysis for the Prime Minister of on 09 January 2013). 26 Sep 2021 at 18:53:45 France has published a report on “Green Nudges”;5 9 Michael M. Grynbaum, “New York Plans to Ban Sale of Big Siz- , on es of Sugary Drinks”, 2012, available on the Internet at: <http:// and the European Commission has published the www.nytimes.com/2012/05/31/nyregion/bloomberg-plans-a-ban- report, “Nudging lifestyles for better health out- on-large-sugared-drinks.html?pagewanted=all> (last accessed on comes”.6 09 January 2013). 170.106.40.40 10 Cabinet Office – Behavioural Insights Team, “Applying behaviour- The impact extends beyond mere speculations. In al insights to reduce fraud, error and debt”, 2011 available on the the US, the nudge approach has been used to design Internet at: <http://www.cabinetoffice.gov.uk/resource-library/be- 7 havioural-insights-team-paper-fraud-error-and-debt> (last accessed the 401(K) pension scheme, suggested as a tax re- 09 January 2013). IP address: 8 fund system and recently, to suggest a controver- 11 Cabinet Office – Behavioural Insights Team, “Applying behavioural sial ban on super-size sodas in New York City.9 In insights to health”, 2011, available on the Internet at “http://www. cabinetoffice.gov.uk/resource-library/applying-behavioural-insight- the UK, large-scale nudge experiments have been health” (last accessed 09 January 2013). carried out by BIT to improve compliance in tax re- 12 Nudge theory trials ‘are working’ say officials, 2012, available on porting10 and to lower alcohol consumption among the Internet at: <http://www.bbc.co.uk/news/uk-politics-16943729> youth.11 Also, both in the US and the UK, nudging (last accessed on 09 January
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