In recent years, social scientists have been incorporating surprising empirical findings about human behavior into economic models. These findings offer important insights for thinking about what both the private and public sectors can do in order to be more effective. They also offer valuable suggestions about the appropriate design of effective, low-cost, choice-preserving approaches, including disclosure requirements, default rules, and simplification. A general lesson is that small, inexpensive initiatives can have large and highly beneficial effects. In the United States, many recent practices and reforms reflect an appreciation of this lesson.
Renowned author, Harvard Law Professor and behavioral economist