The concept of 'nudge theory,' popularized by behavioral economist Richard Thaler, suggests that subtle changes in the way choices are presented can significantly influence human behavior without restricting freedom of choice. For instance, automatically enrolling employees in pension plans, while allowing them to opt out, dramatically increases participation rates compared to requiring active enrollment. Critics argue, however, that such nudges may undermine autonomous decision-making by exploiting cognitive biases. Proponents counter that well-designed nudges can promote beneficial outcomes, such as healthier lifestyles or better financial planning, while preserving individual agency. The ethical debate centers on the balance between paternalism and liberty, raising questions about when it is justifiable to steer choices for the greater good.
❓ According to the passage, what is a primary ethical concern regarding nudge theory?
A. It may reduce participation in pension plans.
B. It could manipulate individuals by leveraging cognitive biases.
C. It restricts freedom of choice by banning certain options.
D. It focuses too much on financial planning rather than health.
✅ Correct Answer
B. B. It could manipulate individuals by leveraging cognitive biases.
