Sludge in
behavioral economics
Behavioral economics is the study of the psychological (e.g. cognitive, behavioral, affective, social) factors involved in the decisions of individuals or institutions, and how these decisions deviate from those implied by traditional economi ...
refers to any form of design, administrative, or policy-related friction that systematically impedes individuals' actions or decisions.
It encompasses a range of frictions such as complex forms, hidden fees, and manipulative defaults that increase the effort, time, or cost required to make a choice, often benefiting the designer at the expense of the user's interest.
The concept of sludge highlights the importance of transparent and user-friendly design in promoting welfare, efficiency, and equity in decision-making processes.
Sludge was popularized by behavioral economist
Richard Thaler
Richard H. Thaler (; born September 12, 1945) is an American economist and the Charles R. Walgreen Distinguished Service Professor of Behavioral Science and Economics at the University of Chicago Booth School of Business. In 2015, Thaler was p ...
and legal scholar
Cass Sunstein
Cass Robert Sunstein (born September 21, 1954) is an American legal scholar known for his work in U.S. constitutional law, administrative law, environmental law, and behavioral economics. He is also ''The New York Times'' best-selling author of ...
. They introduced it as the "dark cousin" of
nudging in their book ''
Nudge: Improving Decisions About Health, Wealth, and Happiness.''
See also
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Nudge theory
Nudge theory is a concept in behavioral economics, decision making, behavioral policy, social psychology, consumer behavior, and related behavioral sciences that proposes adaptive designs of the decision environment (choice architecture) as ways t ...
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choice architecture
Choice architecture is the design of different ways in which choices can be presented to decision makers, and the impact of that presentation on decision-making. For example, each of the following:
* the number of choices presented
* the manner i ...
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Red tape
Red tape is a concept employed to denounce excessive or redundant regulation and adherence to formal rules for creating unnecessary constraints on action and decision-making. The occurrence of red tape is usually associated with governments but a ...
References
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Behavioral economics