Editing Nudge Theory (section)

== <span style="color: #FFFFFF;">Applying</span> ==
'''Modeling 'The Default Nudge' (Saving for retirement):'''
<syntaxhighlight lang="python">
def simulate_savings(enrollment_type, initial_balance=0, years=10):
    """
    Shows how 'Opt-Out' enrollment vs 'Opt-In' changes outcomes.
    """
    # Assumption: 90% follow 'Opt-out' default, only 20% follow 'Opt-in'
    participation_rate = 0.90 if enrollment_type == "Opt-out" else 0.20
    
    avg_annual_save = 5000
    total_pool = participation_rate * 100 * avg_annual_save * years
    
    return {
        "Enrollment": enrollment_type,
        "Participation": f"{participation_rate*100}%",
        "Total Saved (Group of 100)": f"${total_pool:,.0f}"
    }

print(simulate_savings("Opt-in"))
print(simulate_savings("Opt-out"))
</syntaxhighlight>

; Nudge Landmarks
: '''The 'Nudge' Book (2008)''' → The founding text by Thaler and Sunstein that brought behavioral economics to governments.
: '''The UK Behavioral Insights Team (The Nudge Unit)''' → The first government department dedicated specifically to using nudges to improve policy.
: '''Automatic Enrollment Act''' → Laws in many countries that now force companies to default workers into retirement plans.
: '''Traffic 'Calming'''' → Painting lines closer together on a road makes drivers "Feel" like they are going faster, causing them to naturally slow down.
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