Nudging
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Do the Ends of Nudge Policy Justify the Means?
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What difference can a suggested contribution make for your retirement? In 2016, the United States’ “Thrift Savings Plan” included a recommended contribution rate, or ‘anchor rate,’ in its email messaging to the plan’s participants. This relatively low-cost nudge policy led to more than $1 million in new contributions in one…
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How Nudges Can Help Households Internalize Energy Saving Information
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A new study proposes a model to estimate the welfare impacts of providing energy saving reports for households. The study shows that this type of nudge overestimates the reports’ impact because they do not take into account the overall costs of changing people’s behaviors. However, well-targeted schemes can increase both…