Nudge theory exists all around us, and it can be used for a lot of personal benefits. For a quick illustration, I wake up in the morning and see an apple in the fruit basket on my counter that becomes my breakfast. When going to work, some signs say “9 out of 10 people stand to the right on escalators”, and when I go to dinner – I pick a meal that is below the price of the most expensive option.
All of these micro-interactions showed how nudge theory influences our daily lives.
What is Nudge Theory
Richard Thaler (A Nobel Prize-winning economist), and Cass Sunstein wrote a book that brought nudge theory to prominence. In their book, Nudge: Improving Decisions About Health, Wealth, and Happiness – they describe Nudge Theory as
A nudge, as we will use the term, is an aspect of the choice architecture [fancy term for anyone who influences the decisions people make] that alters people’s behavior predictably without forbidding any options or significantly changing their economic incentives. To count as a mere nudge, the intervention must be easy and cheap to avoid. Nudges are not mandates. Putting fruit at eye level counts as a nudge. Banning junk food does not.
To further illustrate the concept, Dr. Thaler talks about how in school cafeterias, someone has to decide the layout. Does the salad go before the burgers or after? He argues to make positive nudges for society, the choice architect often puts the salad first.
How Society Uses Nudge Theory
Nudges are used by businesses and other institutions to make the default option work to society’s greater advantage.
Organ Donation: In Ontario, more than 1,500 people are currently waiting to receive life-saving organ transplants. Yet only 25% of Ontarians are registered. A study investigated and decided to make the process to be an organ donor easier and also made being a donor the default option when getting a new license. At the time of the study, organ donation has risen 143%, nearing the 50% mark of the population. Shifting the default option tripled the number of donors available.
Making Work Better: Innovative Silicon Valley companies are realizing they can use “nudge management” to improve employee’s lives. They are using nudges to boost their employees’ productivity, efficiency, and knowledge. In one case, Google has set up micro kitchens that act as coffee shops where they encourage employees to sit with people they don’t know when there. Thereby increasing both the company connection and expanding employee’s overall skill and knowledge base.
Critique of Nudge Theory, too much Shoving?
The main critiques of nudge theory are that it focuses on short-term wins that don’t lead to systemic behavior change and it feels like big brother in terms of these hidden decision architects are shaping people’s lives.
The main rebuttals to these arguments are that the short-term behaviors lead to long-term changes and that someone has to make these decisions anyway. With nudge theory, the choice architect is aware of the micro-changes and how they can influence the public good. Like with the organ donation or Google making a fun way to learn new skills.
Also, from this guide on developing life-long habits – it is doing the small tasks every day that lead to life-changing results.
Types of Nudges
Studies show there are three main types of nudges that are easy and inexpensive to implement.
1. The Default Option
In this option, the individual automatically receives if he or she does nothing. Such as making the organ donor option the default.
2. The Social Proof Method
Relies on the tendency of individuals to look at the behavior of other people to help guide their behavior. The sign example “9 out of 10 people stand to the right” shows social proof helping normalize the desired behavior.
3. The Salient Method
This involves getting an individual’s attention drawn towards a certain option. For instance, snack shops in the Netherlands started placing healthy snacks by the register. As the result, people purchased more fruit when it was near the register than anywhere else.
How you can use Nudge Theory for Personal Development
We often want to work on our hobbies, work-out, and overall improve our lives. However, with the number of decisions, we have to make every day, deciding to work on our tasks after a long day of work can be tiring and exhausting.
However, with the nudge theory, we can slowly work on making what you want to do the default. Instead of deciding to work-out, it is your default go-to. You feel better, have an easier decision, and make positive progress on your goals.
Struggling to figure out your ideal life? Check out this guide on how to find and work towards your ideal life every single day!
To see how to implement nudge theory for personal development, check out the below tips.
Practical Implementation Tips
1. Nudges with Default Option
Leave it Ready: If you want to go to the gym more, leave your gym bag packed and ready to go the night before. Studies show leaving your bag packed increases the likelihood that people will go to the gym.
Similarly, if you want to draw more – leave your notebook open with a pencil and your reference photo ready to go. If you want to play guitar, get a stand and keep the guitar in your bedroom. When people remove the barriers to doing their hobbies, they are more likely to work on them.
Make doing what you want the default, instead of deciding decision to get there,
Do it first thing: If there is a habit you want to develop like meditating or develop a morning routine, do it first thing. When the alarm goes off, go to your designated space and spend 10 minutes doing the activity. Your mind will slowly wake-up as you are doing the task. If you train yourself to do this, it will become second nature starting the morning the way you want.
2. Nudge Theory with Social Proof
Use Positive Peer Pressure: Do you want to eat healthier, exercise more, and grow your professional career? The good news, so do most people! Make “accountability buddies” with your friends where you all decide to do the same thing. Set-up a group chat and reminders where you encourage and hold each other accountable for eating healthier or going to the gym. Share your progress and trials with the group. It shows you aren’t alone and have people to help you along. If you are shy about including your friends, social media and other websites have ways to get accountability buddies too.
Research: Think of what you want to do in life. Who has already done it? Can you talk to them, or read research about them? For instance, if you want to become financially independent and retire at 35 to travel the world – check out people like Paula Pant on the Afford Anything website. Chances are, there is someone who has already done a variation of what your dream life is. Find them and research and even reach-out!
3. Nudge Theory with the Salient Option
Keep your goals visible: Write down your top three goals and keep them visible every single day. Research shows that leaving fruit out increases the odds people will eat healthier. The same also applies to goals. Make your goals apparent and salient to yourself. By doing so, you will remind yourself of what you want every single day.
Maximize the Good: Just like the fruit by the cash register, how can you nudge yourself so that your goals are a little easier? Maybe it is by leaving items out, writing down ambitions, or using accountability buddies. However, be creative. What makes you tick? To help, what is one tip you wish I included in the article. That is the tip you should use too to maximize the good! Plus, comment below so others can benefit from your insight too!
Key Take-Aways
- Nudge theory is about making the little, more beneficial behaviors easier for people to follow and stick with.
- By using nudge theory in your own life, you can nudge yourself along the way to your big dreams, and the day to day actions that will get you there.
Action Items
Pick two of the above methods to try this week. Practice them every single day and see if you have become more likely to do the little actions each day that lead to your bigger dreams!
