Nudging the financial market? A review of the nudge theory

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

A systematic review of the nudge literature and an examination of its applications across different domains reveals that: (i) a nudge, in the sense of using choice architecture to push people to choose desired results, works well; and (ii) a nudge, in the sense of pushing people to choose desired results so that people will be better off, remains questionable. In financial markets, regulators and financial intermediaries currently use nudge theory to: (i) adjust how investment choices are presented to investors; and (ii) provide information in a selective way. Besides nudging investors, it is also possible for regulators to nudge financial intermediaries towards making more ethical decisions.
Original languageEnglish
JournalAccounting and Finance
DOIs
Publication statusE-pub ahead of print - 28 Mar 2019
Externally publishedYes

Keywords

  • Financial market
  • Investment decision-making
  • Nudge

Fingerprint Dive into the research topics of 'Nudging the financial market? A review of the nudge theory'. Together they form a unique fingerprint.

Cite this