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Nudges in Public Policy and Their Impact on Financial Decisions

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  • First Online:
Global Encyclopedia of Public Administration, Public Policy, and Governance

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Synonyms

Behavioral economics in financial public policy; Behavioral insights on financial decisions

Definitions

Choice Architecture: The design of a choice structure can significantly impact people’s decisions. Choice Architecture refers to the design of a decision-making environment and its impacts on the final decision.

Nudge: A nudge is an element of a choice display that influences the final decision in some predictable way, exploiting people’s cognitive bias. Without forbidding any option or changing real incentives, a nudge alters people’s behavior.

Dark nudge: A dark nudge is a nudge that encourages harmful decisions. It may promote misinformation.

Sludge: A strategy to make behavior change harder, enhancing the decision-making costs.

Introduction

As the principal regulator of a country, the state is responsible for converting legislation into practical regulations that are then implemented through public policies. In this role, the State must establish the Choice Architecture...

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References

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Author information

Authors and Affiliations

  1. Department of Management, Universidad de Santiago de Chile (USACH), Santiago, Chile

    Denise Laroze

  2. Department of Industrial Engineering, Universidad de Chile, Santiago, Chile

    Elisa Duran-Micco

Authors
  1. Denise Laroze
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  2. Elisa Duran-Micco
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Corresponding author

Correspondence to Denise Laroze .

Editor information

Editors and Affiliations

  1. Florida Atlantic University, Boca Raton, FL, USA

    Ali Farazmand

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Laroze, D., Duran-Micco, E. (2024). Nudges in Public Policy and Their Impact on Financial Decisions. In: Farazmand, A. (eds) Global Encyclopedia of Public Administration, Public Policy, and Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-31816-5_4396-1

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  • DOI: https://doi.org/10.1007/978-3-319-31816-5_4396-1

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-31816-5

  • Online ISBN: 978-3-319-31816-5

  • eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

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