Question:
Can artificial scarcity be considered a nudge under nudge theory (from readings it sounds like nudges should be transparent if so, can I call it a non-transparent nudge?Answer:
Thaler and Sunstein in their book define nudge as “any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives.”
By that definition artificial scarcity cannot be considered a nudge. Generally speaking, artificial scarcity leads to an increase in prices and hence it alters people’s economic incentives. Nudges do not alter economic incentives of the people.
Answered by
Last updated on
July 31, 2020