Boosting and nudging: two paths toward better financial decisions

Ralph Hertwig and Till Grüne-Yanoff

Chapter 10 in Financial Education and Risk Literacy, 2021, pp 150-180 from Edward Elgar Publishing

Abstract: Increasingly, policymakers are using insights from psychology and behavioral economics into how people make decisions to inform evidenc-based policy interventions. To date, much of the focus has been on nudges: interventions designed to steer people in a particular direction while preserving their freedom of choice. Yet behavioral science also provides support for a distinct kind of nonfiscal, noncoercive intervention: boosts. The objective of boosts is to foster people’s competence to make their own choices. We explore various dimensions on which boosts differ from nudges, address possible misconceptions, and provide a taxonomy of boosts. We then review and outline boosts that have been proposed and designed to foster people’s competences to make sound finanical decisions.

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.elgaronline.com/view/edcoll/9781789908848/9781789908848.00018.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:19356_10

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().