Nudge theory is a concept from behavioural economics. It suggests that organizations and governments can influence the decisions people make by making small, subtle changes to how choices are presented. This approach does not ban any options or change financial rewards.

Key points:

• It works by using default settings, framing, and social norms to guide choices.
• Common examples include automatic enrollment in pension schemes and placing healthier food in easier-to-reach spots.
• It is based on the idea that humans do not always act in a rational way.