Sustainable Management for Managers and Engineers

1Choice Architecture: Nudging for Sustainable Behavior

Sustainable management demands an in-depth understanding of current global economic, social and environmental pressures. This chapter deals with the use of choice architecture and its potential to influence decision-making. It focuses primarily on the discussion of how nudges influence choice, their applications to design interventions to promote behavioral change, and the challenges and ethical concerns to individuals’ freedom of choice.

1.1. Choice architecture and nudging

1.1.1. Choice architecture

People are becoming more concerned about the impact of their choices and are increasingly motivated to engage in sustainable behavior. Being environmentally sensitive in consumption, making healthy choices, and changing troublesome habits are critical to individual and societal well-being.

Choice architecture refers to the context or environment in which people make choices. Behavioral science has come to realize that the way in which options are presented can have a significant impact on the option that is chosen, and that small changes in the decision environment may influence the decision-making process.

People make countless choices in daily life, including decisions on how to use money, time, effort and attention. As individuals face a wide range of possible choices, have limited cognitive resources, and need quick decisions, they use heuristics to facilitate routine choices. Heuristics are shortcuts or rules of thumb ...