In behavioral economics, sludge is any form of design, administrative, or policy-related friction that systematically impedes individuals' actions or decisions.123 It encompasses a range of frictions such as complex forms, hidden fees, and manipulative defaults that increase the effort, time, or cost required to make a choice, often benefiting the designer at the expense of the user's interest.145
The concept of sludge highlights the importance of transparent and user-friendly design in promoting welfare, efficiency, and equity in decision-making processes.1
Sludge was popularized by behavioral economist Richard Thaler and legal scholar Cass Sunstein. They introduced it as the "dark cousin" of nudging in their book Nudge: Improving Decisions About Health, Wealth, and Happiness.
References
References
- Sunstein, Cass R. (2023). Advanced introduction to behavioral law and economics. Elgar advanced introductions series. Northampton: Edward Elgar Publishing. ISBN 978-1-0353-2314-2.
- Newall, Philip W. S. (July 2023). "What is sludge? Comparing Sunstein's definition to others'" (PDF). Behavioural Public Policy. 7 (3): 851–857. doi:10.1017/bpp.2022.12. ISSN 2398-063X.
- Thaler, Richard H. (2018-08-03). "Nudge, not sludge". Science. 361 (6401): 431. Bibcode:2018Sci...361..431T. doi:10.1126/science.aau9241. ISSN 0036-8075. PMID 30072515.
- Shahab, Sina; Lades, Leonhard K. (19 April 2021). "Sludge and transaction costs" (PDF). Behavioral Public Policy. 8 (2): 327–348. doi:10.1017/bpp.2021.12 – via Cambridge University Press.
- "Sludge". The Decision Lab. Retrieved 2024-04-23.