Predictably Irrational and Nudge
1. Consider our readings from Predictably Irrational and Nudge. Respond to the following questions:
a) What are some fundamental assumptions and empirical findings regarding these perspectives?
b) What are some “nudges” discussed by Ariely and/or by Thaler&Sunstein (or elsewhere, including your own ideas) that you think are especially important?
c) What do you think is the likely effectiveness of use of such “nudges” to attempt to capture potential social benefits of “predictably irrational” behaviors?
d) What do see as the ethical implications of using “nudges” to encourage adoption of particular behaviors?
e) Suggest one interesting research question relating to such “paternalistic interventions.”

Readings

• Ariely, D. Predictably Irrational: the Hidden Forces That Shape Our Decisions, Chapter 13: Beer and free lunches: What is behavioral economics, and where are the free lunches? New York: HarperCollins Publishers, 2009, 231-244.

• Ariely, D. Predictably Irrational: the Hidden Forces That Shape Our Decisions, Reflections and anecdotes about some of the chapters. New York: HarperCollins Publishers, 2009, 245-278.

• Thaler, R. H., &Sunstein, C. R. Nudge. London: Penguin Books, 2009.
a. Introduction, 1-14.
b. Chapter 4: When do we need a nudge? 74-82.
c. Chapter 5: Choice architecture. 83-103.
d. Chapter 17: Objections. 239-254.
e. Chapter 19: Twenty more nudges. 257-268.