Löfgren, Åsa, and Katarina Nordblom. “A theoretical framework of decision making explaining the mechanisms of nudging.” Journal of Economic Behavior & Organization 174 (2020): 1-12.
We present a theoretical model to clarify the underlying mechanisms that drive individual decision making and responses to behavioral interventions, such as nudges. The model provides a theoretical framework that comprehensively structures the individual decision-making process applicable to a wide range of choice situations. We also identify the mechanisms behind the effectiveness of behavioral interventions—in particular, nudges—based on this structured decision-making process. Hence, the model can be used to predict under which circumstances, and in which choice situations, a nudge is likely to be effective.