Influence of Nudges on Consumer Behaviour

Abstract

Nudges, a concept popularized by Richard Thaler and Cass Sunstein, refer to subtle interventions that influence behaviour without restricting choices or significantly altering economic incentives. This paper examines the effectiveness of three types of nudges - default options, social norms, and reminders - in promoting desirable behaviours across three critical contexts: health, finance, and environmental sustainability. By analyzing empirical evidence from various studies, we demonstrate that each type of nudge addresses specific cognitive biases and barriers to action, leading to significant behaviour change.