23 Feb 2009

Nudge

I’m reading an interesting book about economics, public policy, and psychology. It’s called Nudge. They make many interesting points that were completely new to me about the way people do not behave in the rational manner modeled by the previous generation of economists. In fact, there are systematic biases in our decision-making that can be quantified and worked around by enacting sensible policies. The cover issues ranging from the Medicare prescription drug plan to 401k plans, to organ donation, to the environment. The ideas are presented clearly with lots of examples. Highly recommended.