Learning and Exploratory Nudges

So far, a lot of the nudges I have written about assume that there is a known best option for an individual and that a choice architect can help direct people toward that best option. In situations like retirements savings, healthcare benefits selection, and other complicated, structured, and somewhat formulaic choice scenarios, it is relatively easy to take a rational approach to use nudges to help people select an option that will be a good choice for them. But nudges don’t have to direct people toward an already known option. Nudges can be more exploratory in nature and directed toward learning.

 

In some situations, write Cass Sunstein and Richard Thaler in their book Nudge, “it’s good to nudge people in directions that they might not have specifically chosen in advance. Structuring choice sometimes means helping people to learn, so they can later make better choices on their own.”

 

Helping people learn can be better than always trying to give people the right answer. Libertarian paternalism accepts that choice architects don’t know everything about another person’s preferences or self-interest, but assumes someone can generally know the right direction to point other people in. Using nudges to provide more feedback, encourage people to consider appropriate information, and help people better sort through their options can help people understand how to think and approach similar choices. When the goal of a choice architect is to maintain a maximal choice level while providing people with valuable information and alternatives, nudges that encourage learning are incredibly useful.

 

Additionally, nudges that encourage more exploration are helpful for people when it comes to things like listening to music or dining out. Nudges can direct people back toward things they already like, but they can also direct people toward new things that similar people like. Many algorithms on Amazon, music streaming services, and clothing subscription services work in these ways. While they are ultimately designed to keep you engaged or convince you to buy something else, they do employ exploratory nudges to help people find new likes. A company could continue suggesting you buy the same pair of shoes, but they might be able to get you to buy another pair if they show you one that other people also like. Helping people explore new genres of music, new authors, and new styles of clothes can provide real value to the individual, beyond the value to the company in convincing someone to buy something new. The individual still learns if they get feedback from their exploratory choices and gain new insight into finding new alternatives.

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