7 of 8

LESSON 2 · Your Irrational Brain: Behavioral Economics

Nudging in Practice

Governments worldwide have set up behavioral insight teams — often called nudge units — to apply these ideas to public policy. Britain's pioneering unit reported large savings for taxpayers, mostly from cheap tweaks rather than expensive new programs.

Simple interventions produced remarkable results. Personalized text message reminders sharply raised court appearance rates. Simplified tax forms increased filing. Placing healthy food first in school cafeterias shifted student choices without removing any options from the menu.