20 September 2010 The coalition government has recently set up a
‘nudge’ unit in the Cabinet Office, which aims to make use of
new theories in behavioural economics to help the government
design environments which create the right incentives for
British people to behave in a more socially integrated way (e.g.
less binge drinking, save more, eat less fat), or for companies
to overcome their short run focus for long run gains which
benefit society (e.g. spend more on R&D). The danger is that
this powerful ‘nudge’ concept is being used to ‘fudge’ the much
greater Governmental role that society currently needs. The
nudge idea is that market incentives, rather than laws and
regulations, should be used to change behaviour. Gordon Brown is
seen as the Regulator, Cameron the Nudger. Studies have shown
that Nudging may increase the amount of vegetables children eat
at schools by arranging food in particular way. Nudging is
powerful as a complement not a substitute to having serious laws
and regulations. It should be a