Thaler, Richard H.: Nudge

I read „Nudge“ after having read „thinking – fast and slow“, as both are covering the topic of human decision taking, while „Nudge“ is also concentrating on decision architecture on almost 340 pages. After having sorted out a few definitions, the „wild ride“ through decisions covering the almost ever present topic of money and how to support us humans to do the right things (saving for retirement, not spending more money than we can afford...), how to improve societies „nudging“ them into the right directions (two topics being organ donations and climate change) closing with a summary of comments on the complaints both authors received since the publication of the first edition.So what is meant by „nudge“ resp. „nudging“? The metaphor to move somebody by prodding that person into a certain direction is for sure the right one, but the motivation can be for sure more subtile. Since the first publication, the word found its way into behavioral sciences and was for sure also part of the awarded prices to both authors (Mr. Thaler won the Nobel prize in economics 2017, Mr. Sunstein the Holberg price in 2018). While Mr. Kahnemann is more scientific, both Thaler and Sunstein have a vivid, partly humorous writing style which brought several smiles on my face while reading. So far, who all of those who thought the topic to be a dry one or who shied away from Mr. Kahnemanns excerpts, I can fully recommend „Nudge“. The final edition was published in 2021 and therefore offers interesting thoughts and ideas on actual, big topics.

To “Nudge” means to push mildly or poke gently in the ribs and helps where feedback is not effective anymore. Nudges are most effective if they make a change as easy as possible, even automatic or a default. Choice architects are the ones designing changes following that principle. Though nudging can be used in a manipulative way this book focuses on how decision making of humas can be improved.Part one discusses “Biases and Blunders” and explains the two systems, the automatic and reflective system, heuristics, temptation, what we potentially know from “Thinking fast and slow” but also peer pressure and “Following the herd”. Part two focuses on the "Tools of ac choice architect". Part three about “Money” was the one that appealed to me the least because it is very much limited to practices known from the States. Part four deals with "Society" and organ donation and saving the planet in specific before we close in Part five with "the complaints department".The final edition of the book that has been first published in 2009 was extended by some specific thoughts on the Pandemic. Interesting read though not completely new and with too many US-focused cases.

No new content for people who studied Finance/ Economics or even other Business related degree at Uni.