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A theoretical framework of decision making explaining the mechanisms of nudging

Journal article
Authors Åsa Löfgren
Katarina Nordblom
Published in Journal of Economic Behavior & Organization
Volume 174
Pages 1-12
ISSN 0167-2681
Publication year 2020
Published at Department of Economics
Pages 1-12
Language en
Links dx.doi.org/10.1016/j.jebo.2020.03.0...
Keywords Nudge, Decision making, Behavioral intervention, organ donation, defaults save, social norms, rationality, reminders, choice, nudges, model, Business & Economics
Subject categories Economics and Business

Abstract

We present a theoretical model to clarify the underlying mechanisms that drive individual decision making and responses to behavioral interventions, such as nudges. The model provides a theoretical framework that comprehensively structures the individual decision-making process applicable to a wide range of choice situations. We also identify the mechanisms behind the effectiveness of behavioral interventions-in particular, nudges-based on this structured decision-making process. Hence, the model can be used to predict under which circumstances, and in which choice situations, a nudge is likely to be effective. (C) 2020 The Author(s). Published by Elsevier B.V.

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