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Contemporary · Economics

Sludge

Cass Sunstein · 2018

"Sludge is the evil twin of the Nudge. It is the intentional addition of excessive friction designed to stop you from doing something that benefits you."

The idea

A 'Nudge' makes it easier for you to make a good decision (like automatically enrolling you in a retirement plan). 'Sludge' makes it intentionally difficult for you to do something (like a 15-page form required to apply for financial aid, or having to call a phone number during business hours to cancel a digital subscription).

Why it works

Corporations use Sludge to protect their revenue. By making the cancellation process incredibly annoying and confusing, they exploit your cognitive laziness. Government agencies use Sludge (sometimes accidentally, sometimes intentionally) to reduce the number of people claiming benefits they are legally entitled to.

The takeaway — recall it first
Check your understanding

How does 'Sludge' differ from a 'Nudge' in behavioral economics?

Further reading

Read more about the topic

The explanation above is written with AI assistance. These are the originals — go to them to check it.

  • Sludge and FrictionBehavioral Scientist
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