14 Nudges

(Garbinsky, Mead, and Gregg 2020) uncovers that people under save because they have positive illusion of financial responsibility (i.e., they thought they are financially more responsible than the average).

(Mrkva et al. 2021) found that choice architecture influences inequities across people. More specifically, people with the following dimensions enjoy the most benefit from nudges:

  • Low socioeconomic status (SES)
  • Low numerical ability
  • Low knowledge

Hence, we should use nudges to reduce SES disparities.