Risky Business: “Nudging” you to makethe “right” choices

There are many cases where poor information or human psychology can impede effective decision-making.For example, one theory in behavioural economics warns that people taking decisions are inclined to drawincorrect mental references based on what they know. “Nudge theory” is a potential solution to some of the problems identified in behavioural economics. Itadvocates setting a default choice, to help individuals make “better” decisions. The 2008 book by Thaler andSunstein gained critical acclaim and political momentum on both sides of the Atlantic, advocating a type oflibertarian protectionism whereby individuals are nudged towards correct choices by setting the default optionto enable the individual to revert to the better choice.[...]