The presentarticle reviews the debate and research on nudges byfocusing on three main dimensions: (1) the exact defi-nition of nudges; (2) the justification of nudge policies,with a focus on “libertarian paternalism”; and (3) theeffectiveness of nudges, both over time and in compari-son with standard policies.

Systems theory, rebalancing the whole

Nearly every major challenge the United States faces—from alleviating unemployment to protecting itself from terrorism—requires understanding the causes and consequences of people’s behavior. Even societal challenges that at first glance appear to be issues only of medicine or engineering or computer science have social and behavioral components. Having a fundamental understanding of how people and societies behave, why they respond the way they do, what they find important, what they believe or value, and what and how they think about others is critical for the country’s well-being in today’s shrinking global world. The diverse disciplines of the social, behavioral, and economic (SBE) sciences ―anthropology, archaeology, demography, economics, geography, linguistics, neuroscience, political science, psychology, sociology, and statistics―all produce fundamental knowledge, methods, and tools that provide a greater understanding of people and how they live.

This commentary argues that social marketing and the application of behavioural sciences to policy constitute two converging paths towards better policies. It highlights points of convergence and divergence between both disciplines and the potential benefits of further embedding social marketing principles and methods within the recent trend of applying behavioural sciences to policy.

The table below provides guidance for thinking through when specific policy tools are useful and when choice architecture or nudging can be used to complement or enhance a particular strategy.

But you have to get System 1 onside in the first place. Decisions have three big levers – in branding, in politics, in anything else. We call them Fame, Feeling & Fluency. Does a choice come to mind easily (Fame)? Then it’s a good choice. Does a choice feel good? (Feeling) Then it’s a good choice. Is a choice easy to recognise and understand? (Fluency) Then it’s a good choice.