Behavioural Economics – Nudge Nudge Wink Wink

Nudge“Nudge” is somewhat of a naughtly word in English humour, forever associated with Eric Idle’s Nudge Nudge Wink Wink sketch. However in behavioural economics it has a very serious meaning as desribed last night on a BBC News item. It seems that when Job Centres recommend an applicant ot attend a Job Interview, the percent of people actualy turning up for interviews varies with how the letter is written. Small changes can “nudge” the applicant towards changing their behaviour and attendinmg. 

The percent of those attending started at 12%,  improved to 14% if their name was added,  then a further percent increase if the name of the writer was added,  and into the twenties if “good luck” was added. “Nudge” started in government but has spread via behavioural economics into many other public departments tand the private sector,  generally Improving decisions about health, wealth and happiness (so it says!

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