Nudge Theory
Critique of the Maximizing Behaviour of Consumers and Producers
AO3·HL
Syllabus requirement
The use of subtle policy shifts to influence behavior without restricting options.
Assessment objectives
AO3 Synthesis and Evaluation
Higher LevelThis topic is assessed at HL.
Summary
Nudge theory studies how small changes in the way choices are presented can influence people's decisions without removing freedom of choice. It explains common predictable biases in consumer and employee behaviour and describes practical, low-cost interventions (nudges) used by firms and governments to improve social and economic outcomes.