Cultural Transformation

Responses
Matthew Rabin dismisses these criticisms, countering that consistent results typically
are obtained in multiple situations and geographies and can produce good theoretical
insight. Behavioral economists however responded to these criticisms by focusing on
field studies rather than lab experiments. Some economists see a fundamental schism
between experimental economics and behavioral economics, but prominent behavioral
and experimental economists tend to share techniques and approaches in answering
common questions. For example, behavioral economists are investigating
neuroeconomics, which is entirely experimental and has not been verified in the field.
Other proponents note that neoclassical models often fail to predict real world
outcomes. Behavioral insights can also influence neoclassical models. Behavioral
economists note that these revised models reach the same correct predictions as the
traditional models and correctly predict some outcomes where traditional models failed.
The epistemological, ontological, and methodological components of behavioral
economics are increasingly debated, in particular by historians of economics and
economic methodologists.
According to some researchers, when studying the mechanisms that form the basis of
decision-making, especially financial decision-making, it is necessary to recognize that
most decisions are made under stress because, "Stress is the nonspecific body
response to any demands presented to it."
Nudge Theory
Applied Issues
Nudge is a concept in behavioral science, political theory and economics which
proposes positive reinforcement and indirect suggestions as ways to influence the
behavior and decision making of groups or individuals. Nudging contrasts with other
ways to achieve compliance, such as education, legislation or enforcement. The
concept has influenced British and American politicians. Several nudge units exist
around the world at the national level (UK, Germany, Japan and others) as well as at
the international level (OECD, World Bank, UN).
The first formulation of the term and associated principles was developed in cybernetics
by James Wilk before 1995 and described by Brunel University academic D. J. Stewart
as "the art of the nudge" (sometimes referred to as micronudges). It also drew on
methodological influences from clinical psychotherapy tracing back to Gregory Bateson,
including contributions from Milton Erickson, Watzlawick, Weakland and Fisch, and Bill
O'Hanlon. In this variant, the nudge is a microtargetted design geared towards a specific
group of people, irrespective of the scale of intended intervention.
In 2008, Richard Thaler and Cass Sunstein's book Nudge: Improving Decisions About
Health, Wealth, and Happiness brought nudge theory to prominence. It also gained a
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