A Theoretical Framework Explaining the Mechanisms of Nudging

28 Pages Posted: 16 Oct 2020

See all articles by Åsa Löfgren

Åsa Löfgren

Department of Economics, University of Gothenburg

Katarina Nordblom

Göteborg University - Department Economics

Date Written: April 5, 2019

Abstract

In this paper we develop a theoretical model to clarify the underlying mechanisms that drive individual decision making and responses to behavioral interventions, such as nudges. The contribution of the paper is threefold: First, the model provides a theoretical framework that comprehensively structures the individual decision-making process applicable to a wide range of choice situations. Second, we reduce the confusion regarding what should be called a nudge by offering a clear classification of behavioral interventions. We distinguish among what we label as pure nudges, preference nudges, and other behavioral interventions. Third, we identify the mechanisms behind the effectiveness of behavioral interventions based on the 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.

Keywords: Nudge, decision making, behavioral intervention

JEL Classification: D11, D91

Suggested Citation

Löfgren, Åsa and Nordblom, Katarina, A Theoretical Framework Explaining the Mechanisms of Nudging (April 5, 2019). CeCAR Working Paper Series No. 3, Available at SSRN: https://ssrn.com/abstract=3711941 or http://dx.doi.org/10.2139/ssrn.3711941

Åsa Löfgren (Contact Author)

Department of Economics, University of Gothenburg ( email )

Box 640
Vasagatan 1, E-building, floor 5 & 6
Göteborg, 40530
Sweden

HOME PAGE: http://economics.gu.se/english/staff/senior_lecturers-lecturers-_researchers/asa_lofgren/?languageId

Katarina Nordblom

Göteborg University - Department Economics ( email )

Box 640
Vasagatan 1, E-building, floor 5 & 6
Göteborg, 40530
Sweden

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
197
Abstract Views
1,087
Rank
317,276
PlumX Metrics