In a world that tends to swing to extremes, Richard Thaler and Cass Sunstein’s book Nudge proposes a radical approach which looks at embracing a middle road to making better decisions. Terming their approach as “libertarian paternalism” – a seeming oxymoron at first glance – Thaler and Sunstein moots that people are often unable to make good decisions when they lack experience, expert knowledge, or are overcome with inertia.
Think for example about the last time you invested in an insurance policy. Were you aware of how its terms of premium payments were like compared to others? Or the penalties that are imposed if you surrender it early? What happens if (touch wood) you are unable to keep the policy going?