Nudge (Summary)
How did Amsterdam's Schiphol Airport reduce urinal 'spillage' by a staggering 80% without a single sign, warning, or instruction? They etched the image of a fly into the porcelain. Men, almost subconsciously, aim for the target. This simple, cost-free change in the environment is a 'nudge'—a perfect example of how subtle cues can dramatically alter human behavior for the better, often without us even noticing.
You're a 'Human,' Not a Rational 'Econ'
Classical economics assumes people are 'Econs'—perfectly rational beings. In reality, we are 'Humans'—predictably irrational and prone to biases like procrastination, temptation, and social influence.
Most people know they should save more for retirement but fail to do so. The 'Save More Tomorrow' program automatically enrolls employees in a plan where their contribution increases with every pay raise. By using our natural inertia and loss aversion, this program dramatically increased employee savings rates from 3.5% to 13.6% in one company.
There Is No Neutral Design
The way choices are presented—the 'choice architecture'—is never neutral. It always influences the outcome, whether by accident or by design. Recognizing this allows us to consciously design better environments.
A school cafeteria manager wants students to eat healthier. Placing the fresh fruit at eye level and the candy on a less convenient bottom shelf doesn't forbid any options, but it significantly increases the consumption of fruit. The layout itself is a nudge.
Defaults Are the Most Powerful Nudge
We have a massive bias toward the default option due to inertia and the implicit suggestion that it's the recommended choice. Changing the default is one of the most effective and least intrusive ways to influence behavior.
In countries where you have to 'opt-in' to be an organ donor, registration rates are extremely low. In countries where the default is 'opt-out' (you are automatically a donor unless you choose not to be), rates are often over 90%. This simple change in the default setting saves thousands of lives.
Give Feedback and Make it Simple
The best way to help people improve is to provide clear, immediate, and simple feedback. Complex data is often ignored; simple, comparative feedback drives change.
Instead of just showing kilowatt-hours on an energy bill, some companies provide a smiley or frowny face comparing a household's energy use to their neighbors'. This simple social comparison is a much more powerful nudge for conservation than raw data alone.
