Sludge_theory

Sludge theory

Sludge theory

Economic behavioural theory

Sludge in behavioral economics refers to any form of design, administrative, or policy-related friction that systematically impedes individuals' actions or decisions.[1][2][3] It encompasses a range of frictions such as complex forms, hidden fees, and manipulative defaults that increase the effort, time, or cost required to make a choice, often benefiting the designer at the expense of the user's interest.[1][4][5]

The concept of sludge highlights the importance of transparent and user-friendly design in promoting welfare, efficiency, and equity in decision-making processes.[1]

Sludge was popularized by behavioral economist Richard Thaler and legal scholar Cass Sunstein. They introduced it as the "dark cousin" of nudging in their book Nudge: Improving Decisions About Health, Wealth, and Happiness.

See also

References

  1. [1]
    Sunstein, Cass R. (2023). Advanced introduction to behavioral law and economics. Elgar advanced introductions series. Northampton: Edward Elgar Publishing. ISBN 978-1-0353-2314-2.
  2. [2]
    Newall, Philip W. S. (July 2023). "What is sludge? Comparing Sunstein's definition to others'". Behavioural Public Policy. 7 (3): 851–857. doi:10.1017/bpp.2022.12. ISSN 2398-063X.
  3. [3]
    Thaler, Richard H. (2018-08-03). "Nudge, not sludge". Science. 361 (6401): 431. Bibcode:2018Sci...361..431T. doi:10.1126/science.aau9241. ISSN 0036-8075. PMID 30072515.
  4. [4]
    Shahab, Sina; Lades, Leonhard K. (19 April 2021). "Sludge and transaction costs". Behavioral Public Policy. 8 (2): 327–348. doi:10.1017/bpp.2021.12 – via Cambridge University Press.
  5. [5]
    "Sludge". The Decision Lab. Retrieved 2024-04-23.
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