A behavioral economics concept that suggests that small, subtle, and often indirect changes in the environment can influence and guide people's behavior towards making better choices. It is based on the idea that people often make choices that are not in their best interest because of cognitive biases or other external factors thai influence their decision-making process.
Nudges can be designed to encourage people to make better choices without forcing them to do so. For example, placing healthy food options at eye level in a cafeteria can nudge people towards making healthier choices. Similarly, using default options, such as enrolling employees in a retirement plan by default, can nudge people towards saving for their future.
The idea behind Nudge Theory is that these small nudges can have a big impact on behavior change without limiting people's freedom of choice. The theory has been applies in various domains, including healthcare, environmental conservation, and public policy, t encourage people to make better decisions for themselves and society.