I’m Jason Calvert, a pragmatist and a health economist with a passion for health promotion, non-communicable diseases and international development. This is the first article in a series which will attempt to demystify some key economic concepts for Global Health. The idea stemmed from a noticeable divide between development practitioners and economic theorists. By instilling a few basic concepts from the economic world into global health and development programming, I believe we could see improvements in both efficiency and foresight.
Let’s start exploring, concept by concept.
Concept #1: Nudging
It’s everyone’s favourite buzz word at the moment. You may have heard the term, but not be so familiar with what it means?
Nudging is a ‘carrot’-type incentive. You don’t force people and you don’t lure them using money either. You get a little creative and influence people’s behaviour (preferably for the better) using more inventive methods.
It might be changing a default option for people such as serving skim milk in coffee unless otherwise told not to. It might be making certain systems opt-out rather than opt-in such as organ donation. Or it might be just putting something right in front of people in true ‘carrot’ style such as putting the office stairwell in a prominent location, rather than relegating it to be behind a door marked ‘emergency’.
So what are these nudges really doing? They’re capturing people who are at the margin on all of these decisions. If I take myself as an example, I really can’t tell the difference between a skim coffee and a ‘full-fat’ coffee, and in many places the two cost exactly the same. By default, if I order a latte, it might come full-fat. Adding that extra word to my order just never crosses my mind, even though I would happily drink a skim coffee and it would be a healthier option. By changing the default to skim, cafes would effectively nudge people like myself to make a healthier choice. Same goes for the stairwell. In my office, the stairwell is hidden, dark and sterile – feeling like a true emergency-only feature of the building. As such I’ll often take the elevator just a couple of floors.
Many good examples of nudging exist in the developed world these days. But what about Low- and Middle-Income Countries (LMICs)?
There is great potential to address some of the underlying behavioural issues behind the rise of non-communicable diseases, with opportunities concerning chewing tobacco in India and potent home-brews in Kenya as examples. However the behavioural aspects behind communicable diseases also present opportunities – such as nudging people to practice safer sex or use proper toilet facilities where available.
As a public health economist, I’m in the market for fixes that are both effective and affordable. ‘Cost-effective’ one could say. And with development aid money always running scarce, there’s a large push to demonstrate cost-effectiveness in global health interventions. So are nudges cost-effective? Sometimes, but not necessarily. Simplicity is often the key.
Consider the huge public health issue of road accidents in LMICs. Singapore (albeit a high-income country) has taken a novel approach to this issue by painting horizontal lines on roads that have a high risk of accidents. This relatively cheap undertaking makes drivers appear to be travelling faster than they actually are, hence nudging them to slow down and reduce the risk of accident. Returning to the coffee example, switching the default to skim milk has practically no cost associated with it. Nudging a previous blood donor to donate again through a reminder is similarly cheap. Other nudges however – like plain packaging or restrictions on visual display of tobacco products – have significant political and legal costs associated with implementation that need to be carefully considered and weighed.
However, cost-effectiveness is not all we should be concerned about. What about equity? Where does this come into the cost-effectiveness equation?
Consider differences in education levels among a population. For some nudges, such as the horizontal lines on the road, there is no real issue if people don’t fully understand why they have been painted there. But consider something else like organ donation. By default in many countries you have to opt-in to be an organ donor. If all of a sudden the government decides to make this an opt-out system instead (whereby everyone is now automatically an organ donor unless they actively ask to be removed from the list), we have quite a significant equity issue if the entire population is not made fully aware of their rights and options, or isn’t able to properly interpret the information provided.
In some circumstances though nudging could improve equity. An example of this is traffic-light labelling on food products, which can help demystify the nutritional content of food for those who would otherwise find this process difficult (and let’s be honest, this is most of us!).
The moral of the story?
With the alarming growth in non-communicable diseases worldwide, we need to look for affordable and inventive health promotion approaches that can sit alongside larger interventions such as education campaigns, fiscal policies and other regulations. However, when appraising or evaluating nudge approaches, we need to think beyond cost. Are we creating more problems? Does our proposed nudge generate an equity issue? Do we need to push instead of nudge to generate an outcome?
Nudges are no silver bullet. But a well-considered nudge alongside other interventions could generate a nice additional health benefit at minimal cost.
The When push comes to nudge – playing on behaviours to generate healthy action by Translational Global Health, unless otherwise expressly stated, is licensed under a Creative Commons Attribution 3.0 Unported License.






Jason, I think your article is good, interesting and generally spot on. A couple of comments, also to the comments:
1) You mention the case of nudge relative to opt-in vs. opt-out for organ-donation. I would just like to add that “nudgers”, including Thaler & Sunstein, do not believe in opt-out due to ethical problems (at least in my case: http://www.tandfonline.com/doi/abs/10.1080/15265161.2011.634950). In the case of Denmark we (Thaler and I wrote this article (in Danish): (http://politiken.dk/debat/ECE1555348/danskerne-skal-afkraeves-stillingtagen-til-organdonation/?v=c) which is based on a piece by Thaler in N.Y. Times: (http://www.nytimes.com/2009/09/27/business/economy/27view.html?_r=0). Just wanted to add that.
2) Next, Ricarda writes in the comment that “The public is not aware of the fact that public authorities try to change its behaviour because this is actually the beauty of the tool.”
I do actually not believe this 100 % correct. In a forthcoming paper in European Journal of Risk Regulation me and my colleague A. Jespersen provides a 4-stringed typology of nugdes showing that non-transparency is not a characteristic of nudge-interventions, but only certain sub-types. Think of the paradigmatic fly-in-urinal example, the save-more-tomorrow program coupled with opt-in procedure, or Brian Wansink’s colored chips.
In addition. Even for those nudges that lack transparency we should consider whether and why nudging should meet requirements not met by standard tools of regulation. Are people generally able to spot the tax-layers put on a given consumer-good? No, so taxation is often non-transparent as well. Actually this points to an important issue to which I’ll return, but first we may notice another place in the comments where we need to consider this point. Ricarda thus writes that “This tool takes for granted that authorities imposing the nudging know best what is good for the public – at least they know it much better than the public itself.” Again, I think that this applies to a vast range of standard policy-measures and thus the problem is not with nudging as such.
Finally, Ricarda do point to an important issue, namely controllability. If you read Danish or know how to use google translate, you may want to go and read our piece “when knowledge becomes a democractic challenge’: http://www.kommunikationsforum.dk/artikler/nudge-naar-viden-bliver-en-demokratisk-udfordring
I have read the “Nudge” book by Thaler and Sunstein and they call the government that does the nudging — the benevolent authority. That assumes that they are choosing the “right” thing for the public. Considering the history of health recommendations and the ever changing food pyramid, we can’t be always sure the government knows that is “the right” thing to do or eat.
For example, one of recommendation about the egg consumption is that the egg yellow is bad for you (full of fat) and the egg white good (full of protein). As a consequence the US market started offering egg whites only products. However the more recent study shows that the nature designed the egg just right and that consuming egg yellow and white together is better for protein absorption.
I have no problem with benevolent authority as long as the authority is properly educated in the latest health research.
Very nice article, I share your impression that nudging is the maybe most popular public administration tool at the moment.
However, your take on it seems very rosy for me. Point taken: nudging does not create resistance like the rules-and-principles approach. I’d like to add the following concerns:
a) Lack of transparency
The nudging approach divides among the uneducated/ ignorant public which needs to be educated by using subtile measures on the one side, and authorities which execute the nudging on the other side. The public is not aware of the fact that public authorities try to change its behaviour because this is actually the beauty of the tool. But to my taste, authorities should rather inform the public about the advantages and disatvantages of product A and product B and give it the freedom of choice. This works for the traffic light example, because the consumer can still choose to eat unhealthy food, but it does not work for the milk replacement example.
b) Who is the principal?
This tool takes for granted that authorities imposing the nudging know best what is good for the public – at least they know it much better than the public itself. This poses the question: Who forms what I call here “authorities”? The government? Do they have to be democratically elected? Or should it be private entities? Even if authorities do not get it “better”- at least they have to get it “right”. With regards to that, I do have my concerns. Especially when we look at the traffic lights example, it stigmatises fats and sugar as bad, which is not only the fault of the fat and sugar itself, but also of the intake. Furthermore, it sends a wrong signal to people suffering from underweight and anorexia.
No doubt, the nudging tool asks for a lot of trust in the government and public authorities.
c) Controllability
The nudging tool is fascinating for authorities, because it avoids a lot of resistance, but is not predictable at all. It calls for the compliance of unspoken rules, but in the end, it is the consumer who decides. Furthermore, the time horizon is absolutely unpredictable. I would assume that it takes some time to induce a change in behaviour, but I doubt that policy-makers have this time.
Unfortunately, nudging is not a rule that can be enforced and against which enforcing authorities can be held accountable. This makes it pretty uncomfortable for policy-makers.
I agree with you that the nudging approach is extremely effective to induce smaller behaviourial changes. It is very smart because it does not create opposition by the public.
But it clearly has its limits, especially when it comes to larger scales (I guess it wouldn’t damage you a lot to drink a full-fat latte instead of a low-fat latte…). I would mainly regard it as an add-on to more drastic policies. Maybe it can go hand in hand with taxes?