Alert
Close

Help pack a million meals for struggling seniors on Sept. 11. Volunteer today

Highlights

Open

 

Caucasian couple looking at a laptop computer together

Horoscope

Virgo - AARP Horoscope

Look at what your future holds if your birthday is between August 23 & September 22

Contests & Sweeps

Enter the $50K Picture Your Retirement Sweepstakes. Ends 8/31/15. No purchase necessary. Enter for Official Rules.

AARP REALPAD

The tablet with free 24/7 customer support. Learn More

Most Popular

Viewed

Book Excerpt: Nudge: Improving Decisions About Health, Wealth, and Happiness

Read this book excerpt from "Nudge" by Richard H. Thaler and Cass R. Sunstein.

The credit card companies had a good intuitive understanding of what psychologists would come to call “framing.” The idea is that choices depend, in part, on the way in which problems are stated. The point matters a great deal for public policy. Energy conservation is now receiving a lot of attention, so consider the following information campaigns: (a) If you use energy conservation methods, you will save $350 per year; (b) If you do not use energy conservation methods, you will lose $350 per year. It turns out that information campaign (b) framed in terms of losses, is far more effective than information campaign (a). If the government wants to encourage energy conservation, option (b) is a stronger nudge.

Framing works because people tend to be somewhat mindless, passive decision makers. Their Reflective System does not do the work that would be required to check and see whether reframing the questions would produce a different answer. One reason they don’t do this is that they wouldn’t know what to make of the contradiction. This implies that frames are powerful nudges, and must be selected with caution.

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

Advertisement
AARP Bookstore

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

Live Nation

Members save 25% or more when buying tickets in groups of four from Ticketmaster.

Cirque Du Soleil

Members save 15-30% on tickets to live Cirque du Soleil shows.

Member Benefit AARP Regal 2

Members pay $8 for Regal ePremiere tickets purchased online. Conditions apply.

Member Benefits

Join or renew today! Members receive exclusive member benefits & affect social change.

Advertisement