Nudge and Sludge: The Vocabulary of Everyday Money Decisions
About this episode
This episode explores the vocabulary of money decisions, focusing on habits, defaults, and friction in economic choices.
In this episode of Money Lessons, Andy supplies the vocabulary behind three weeks of teaching on habits, defaults, and friction. Herbert Simon — who was never an economist — challenged his era's assumption that buyers decide with complete information, and won a Nobel Prize for finding those limits inside companies before anyone thought to look for them in customers. Richard Thaler named the arrangement of options in front of you choice architecture, and a decade after publishing Nudge with Cass Sunstein, he coined sludge for friction pointed at the person who has to get through it. AndrewTemte.com
People in this episode
Host: Andrew Temte
Topics covered
- money decisions
- choice architecture
- habits
- defaults
- friction
Mentioned in this episode
Organizations: Cass Sunstein
More episodes of Money Lessons with Andrew Temte, PhD, CFA
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- The Same Old Songs: What Musical Taste Reveals About Financial Change
- Habits and Money: Why You Can't Remember What You Spend
- Present Bias: Why Your Future Self Keeps Losing the Argument
- Your Personal Economy: The Six Jobs Your Money Has
- Why Timing the Market Fails: The Discipline of Owning Stocks
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