The Ministry of Nudges

Amongst all the festive fare, I spotted this article - flagged up on Tyler Cowen's excellent Marginal Revolution website (a prime of example of how Economics can be cool! Really!!!) - on the Behaviourial Insights Team at 10 Downing Street. "The what?", I hear you cry. It's the Ministry of Nudges, that branch of government that tries to utilise the insights of Thaler and Sunstein to improve the delivery of policy.

The article itself (available here) contains some fascinating insight into areas where libertarian paternalism has been applied, to unemployment and the plight of the long-term unemployed, the issue of tax collection and tax evasion. I wasn't familiar with these examples, but often get my students to think about how 'nudge theory' can be applied within the context of their lives at school - can they think of 'nudges' that might make have beneficial implications for things such as getting work in on time, avoiding lateness and to ensure the better use of their time.

In part, in response to this, but also as a result of some other reading some other behavioural economics, I award bonus marks for any work that's handed in early - the theory being that it nudges some people into getting it in early and makes marking and returning it easier. However, research suggests that it is also likely to have beneficial effects on a student's grades.

I'm sure there are other 'nudge' examples out there...they're worth discovering and applying both as students and teachers!