Nudge

Traditional economics assumes people are rational, but actual human decision-making relies on a fast, instinctive automatic system that is prone to predictable errors. By employing choice architecture, policymakers and designers can implement nudges that gently guide individuals toward healthier, wealthier decisions. This approach, known as libertarian paternalism, preserves freedom of choice while deliberately arranging defaults and options to minimize cognitive friction and counter detrimental biases.