Market test or government guess? Are government efforts to "nudge" us to lose weight really based on science?
Marlow, Michael L.
Rising obesity prevalence in the United States has led public
health experts to propose solutions to what is frequently called an
"obesity epidemic." Obesity prevalence has doubled over the
past three decades and, as of 2009, more than one-third of adults were
obese. A recent study in the American Journal of Preventive Medicine by
Eric Finkelstein et al. predicts that by 2030 42 percent of Americans
will be obese and 11 percent will be severely obese, which is 100 or
more pounds overweight. Obesity is a major health concern given its
association with chronic conditions that include diabetes, hypertension,
high cholesterol, stroke, heart disease, certain cancers, and arthritis.
Traditionally, economists propose controlling population weight
through taxing "bad" foods, subsidizing "good"
foods, and implementing other policies that change the economic
incentives of rational individuals. However, many behavioral economists
believe that undesired weight gain is the result of unconscious and
irrational decisions that result from psychological, social, cognitive,
and emotional factors. In their 2008 book Nudge, Richard Thaler and Cass
Sunstein espouse the behavioral economics view that well-designed
"nudges" devised by "choice architects" can steer
individuals toward wiser decisions that enhance their welfare. Thaler
and Sunstein argue that the most important applications of "nudge
theory" often lie with governments rather than markets.
But are nudges designed to steer us toward better food and beverage
consumption behaviors an effective means of lowering population weight?
This article discusses our state of knowledge on obesity causes and
prevention. It presents the basics of nudge theory, followed by
criticisms of that theory. It then discusses various imperfections that
all choice architects--whether in government or the market--must face
that suggest that nudges are a blunt instrument for reducing population
weight. It also discusses how nudging by government differs from nudging
by markets. Through this discussion, it becomes apparent that market
nudging is the more promising avenue for helping citizens to lose
weight.
OBESITY CAUSES AND PREVENTION
Historical body mass index (BMI) data show that Americans started
gaining weight in the 1920s, but only in the 1980s did a large number of
Americans begin crossing the BMI threshold of 30 that usually defines
obesity. To calculate BMI, individuals divide their weight by the square
of their height, with values given in units of kilograms per
meter-squared. A six-foot-tall male, for example, is obese if he weighs
at least 221 pounds.
Despite decades of research, a clear understanding of obesity has
proven elusive because of problems in defining obesity, lax application
of scientific standards, tenuous assumption-making, flawed measurement,
and limited examination of alternative explanations of cause. Krista
Casazza et al. argue in a 2013 New England Journal of Medicine paper
that scientifically unsupported beliefs about obesity are pervasive in
both the scientific literature and the popular press. The authors
identify myths, presumptions, and facts based on the current state of
scientific knowledge. They consider propositions to be true only when
supported by confirmatory randomized studies. Below are some examples
from each category, all of which are especially relevant to this
article.
Among the myths (e.g., common beliefs that are contradicted by the
scientific evidence) are:
* Small, sustained changes in energy intake or expenditure will
produce large, long-term weight changes.
* Setting realistic goals in obesity treatment is important because
otherwise patients will become frustrated and lose less weight.
* Large, rapid weight loss is associated with poorer long-term
weight outcomes than is slow, gradual weight loss.
[ILLUSTRATION OMITTED]
The presumptions (i.e., beliefs that persist in the absence of
supporting scientific evidence) include:
* Regularly eating (vs. skipping) breakfast protects against
obesity.
* Eating more fruits and vegetables will result in weight loss or
less weight gain regardless of whether one intentionally makes any other
behavioral or environmental changes.
* Snacking contributes to weight gain and obesity.
Finally, legitimate facts (i.e., beliefs that are consistent with
the scientific evidence) include:
* Diets very effectively reduce weight, but trying to go on a diet
or recommending that someone go on a diet generally does not work well
in the long term.
* Exercise helps mitigate the health-damaging effects of obesity,
even without weight loss.
* Physical activity in a sufficient dose aids long-term weight
maintenance.
* Involving parents promotes greater weight loss or maintenance in
overweight children.
* Provision of meals and use of meal-replacement products promotes
greater weight loss.
A recent study by Kathryn Kaiser et al. and published in the
American Journal of Clinical Nutrition discusses some of the popular
myths regarding obesity. The study found no support for the commonly
made recommendation that eating more fruits and vegetables promotes
weight loss. Such recommendations are common, exemplified by the U.S.
Department of Agriculture's "Choose My Plate"
informational campaign, for example. What is often viewed as a
commonsense prescription apparently only works to lower weight when it
is combined with reduced intake of other energy sources. Fruit and
vegetable consumption has demonstrable health benefits, but apparently
weight loss is not one of them so long as individuals do not also reduce
their intake of other foods.
'NUDGE' THEORY
According to behavioral economists, individuals are not always
rational. Poorly informed individuals who follow perceived norms and
exercise poor judgment make unconscious and irrational decisions.
Irrational decisions contribute to undesired weight gain when
individuals do not realize how much food they actually eat. A study by
Brian Wansink and Jeffery Sobal, published in Environment and Behavior,
concludes that test subjects underestimated the number of daily
food-related decisions they make by an average of more than 221
decisions in what the authors refer to as "mindless eating."
Sunstein and Thaler, in a 2003 Chicago Law Review paper, argue
there is no clear difference between choice and coercion because those
states represent two ends of a continuum. They argue that someone--a
choice architect--is always deciding the default choice by providing the
quantity and quality of information that frame people's choices.
Sunstein and Thaler argue that choice architects should change default
choices and provide information when people make irrational choices.
In their 2008 book, Thaler and Sunstein define a 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. To count as a
mere nudge, the intervention must be easy and cheap to avoid.
Nudges are not mandates. Putting fruit at eye level counts as a
nudge. Banning junk food does not.
Often described as "libertarian paternalism," these
nudges are intended to steer people toward decisions that they would
choose if they were not subject to various decisionmaking flaws.
Systematic biases in behavior fall into two broad categories.
First, "bounded willpower" problems arise when individuals
suffer from persistent self-control problems associated with
"hyperbolic discounting." Individuals are said to exhibit time
inconsistency about discounting future tradeoffs between the present
self and the future self. For example, an overweight person finds it
hard to quit eating desserts but still wants to lose weight because his
long-term welfare rises when he loses weight today. Education has been
proposed to help overweight people better understand these tradeoffs and
perhaps foster lower discount rates. Calorie labels are nudges based on
the assumption that more informed consumers will make healthier choices.
A second category focuses on "cognitive biases" that
prevent individuals from pursuing actions that improve their welfare.
For example, a "status-quo bias" might lead individuals to
stick with what they have rather than search for better alternatives.
Behavioral economists frequently propose setting default options
that nudge people toward healthier eating. Plate shapes and sizes,
lighting, color, and convenience are a few of the hidden environmental
factors believed to increase consumption norms and decrease consumption
monitoring. Wansink, in a 2004 Annual Review of Nutrition paper, offers
the following default option changes aimed at lessening temptations to
overeat:
* Store tempting foods in less-convenient locations (such as
basements or the tops of cupboards).
* Do not leave serving bowls and platters on the dinner table.
* Reduce the convenience of stockpiled foods by boxing them up or
freezing them.
* Replace short, wide glasses with tall, narrow ones.
* Reduce serving sizes and consumption by using smaller bowls and
plates.
* Use smaller spoons rather than larger ones.
The following passage from Nudge shows the influence that
Wansink's experimental research on "mindless eating" has
had on nudge theory:
In another Wansink (2006) masterpiece, people sat down to a large
bowl of Campbell's tomato soup and were told to eat as much as they
wanted. Unbeknownst to them, the soup bowls were designed to refill
themselves (with empty bottoms connected to machinery beneath the
table). No matter how much soup subjects ate, the bowl never
emptied. Many people just kept eating, not paying attention to the
fact that they were really eating a great deal of soup, until the
experiment was (mercifully) ended. Large plates and large packages
mean more eating; they are a form of choice architecture, and they
work as major nudges. (Hint: if you would like to lose weight, get
smaller plates, buy little packages of what you like, and don't
keep tempting food in the refrigerator.)
Other experiments have also found that altering choice architecture
influences eating. A 2011 Judgment and Decision Making paper by Paul
Rozin et al. found that slight changes in the accessibility of foods in
a cafeteria salad bar reduced intake by 8-16 percent. Making food
slightly more difficult to reach (varying proximity by 10 inches) and
changing sizes and accessibility of serving utensils were two such
changes. Likewise, a 2012 Journal of Public Health paper by Andrew Hanks
et al. found that, in a high school lunchroom, moving healthier foods to
the "convenience line," where unhealthy foods were usually
placed, increased sales of healthy foods by 18 percent and decreased
sales of unhealthy foods by 28 percent.
"Loss aversion," another cognitive bias, is when people
are disproportionately sensitive to the prospects of losing something
compared with the prospects of gaining something. Getting people to
pre-commit to healthy goals (e.g., exercising three days a week or
skipping desserts) coupled with the risk of losing money are nudges that
might help people honor their health goals.
CRITICISMS OF NUDGE THEORY
Empirical evidence indicates that nudges do not always work as
planned. A 2007 Appetite paper by Barbara Rolls et al. found that
altering plate sizes had no significant effect on energy intake for
meals eaten in three laboratory experiments. For instance, participants
made significantly more trips to the buffet when they were given the
smallest plate in one of those experiments.
Adding "healthy" options to "unhealthy" meals
is also problematic. A 2007 Journal of Consumer Research paper by Karen
Wilcox et al. found that the mere presence of a healthy food option
appeared to vicariously fulfill nutrition goals and provide consumers
with a license to indulge, thus exerting ambiguous effects on overall
diets. Psychologists also report "negative calorie illusion,"
whereby adding a healthy option to weight-conscious individuals'
unhealthy meals decreases their perception of the meals' calorie
content. According to a 2007 Journal of Consumer Psychology paper by
Alexander Chernex, for example, weight-conscious participants estimated
that a hamburger alone contains 734 calories but only 619 calories when
accompanied by celery sticks.
Labeling requirements are designed to help individuals who
routinely underestimate calories, fats, and other attributes of foods.
But evidence so far does not clearly demonstrate that required labels
result in healthier eating. A 2009 Health Affairs study by Brian Elbel
et al. of New York City's 2008 law requiring restaurant chains to
post calorie counts found no change in calories purchased after the law.
The 2011 Finkelstein et al. American Journal of Preventive Medicine
paper reached a similar conclusion in a study of menu-labeling
regulation in King County, Wash. A 2011 American Economic Journal:
Economic Policy study by Brian Bollinger et al. of mandatory calorie
posting on purchase decisions at Starbucks found virtually no change in
purchases of beverage calories. A 2013 American Journal of Public Health
study by Julie Downs et al. examined the effects of providing daily,
per-meal, or no calorie recommendations to randomized subsets of adult
customers entering two McDonald's restaurants. They found no effect
on purchases. A 2014 Current Obesity Reports paper by Sarah Rendell and
Charles Swencionis found that calorie labeling did not influence what
patrons of a large chain bakery/cafe ordered for lunch. Studies also
suggest that restaurants claiming to serve 'healthy" foods may
steer customers to underestimate the caloric density of their foods and
that customers are more likely to purchase higher-calorie side dishes at
restaurants that claim "healthy" foods when compared with
those not making such claims.
Conflicting evidence on nudge efficacy may stem from the fact that
nudges are often based on laboratory experiments. There are well-known
problems in extrapolating results from laboratory experiments to the
real world. Participants' choices in experiments are influenced by
factors that include financial incentives, how choices are framed, the
nature of others' scrutiny, and participant selection. Real-world
decisions are made under circumstances not so easily mimicked in
laboratories. A 2013 Obesity Reviews literature review by L. R. Skov et
al. of 12 studies altering choice architecture found that the studies
were generally of short duration, had questionable methodology, and were
not conducted in naturally occurring environments.
Fallible architects / Overconfidence in nudge efficacy probably
explains some rather ambitious claims. The 2011 Rozin et al. study
claims that very small but cumulative decreases in food intake from
modest changes in accessibility and sizes of serving utensils may be
sufficient to "erase obesity" over a period of years.
Likewise, Wansink's 2004 Annual Review of Nutrition study argues
that small changes in choice architecture allow people to
'effortlessly control their consumption and lose weight in a way
that does not necessitate the discipline of dieting."
Nudge theory often assumes that choice architects exhibit
superhuman traits. Choice architects, for example, supposedly escape
much of the irrational decisionmaking that behavioral economists believe
affects so many individuals, and they know all relevant information
about individuals' true preferences. Behavioral economists rarely
question why choice architects themselves would not be subject to the
same decisionmaking flaws that other people are. Nicklas Berggren's
2012 Review of Austrian Economics study examined behavioral economics
articles in 10 highly ranked economics journals from 2000 through 2009
to determine whether the authors had addressed the rationality or
cognitive ability of policymakers. The main finding was that 20.7
percent of all articles contained a policy recommendation and that 95.5
percent of those did not contain any analysis of the rationality or
cognitive ability of policymakers.
Choice architects are also implicitly assumed to not fall victim to
the many presumptions and myths surrounding obesity, as previously
discussed. These are:
* Small, sustained changes in energy intake or expenditure will
produce large, long-term weight changes.
* Setting realistic goals in obesity treatment is important because
otherwise patients will become frustrated and lose less weight.
* Large, rapid weight loss is associated with poorer long-term
weight outcomes than is slow, gradual weight loss.
Previous discussion indicated various examples of overstated
promises that a few small nudges can significantly dent population
weight. These would appear to be based more on myths regarding
"small changes" than on factual evidence.
MARKET NUDGING THEORY
It is no secret that many of us are concerned with our weight. A
recent Gallup poll found that 51 percent of adult Americans want to lose
weight, although only 25 percent are seriously working toward that goal.
People were undoubtedly eating on smaller plates, avoiding buffets, and
skipping desserts for many years before behavioral economics came to
light. Apparently, Americans are lowering caloric intakes; the U.S.
Department of Agriculture reports that average daily caloric intake
declined by 118 calories (about 5 percent) between 2006 and 2009 among
working-age adults.
Markets nudge all the time. Thaler and Sunstein acknowledge that in
their 2008 book, though they appear to strongly favor government nudges
rather than market nudges when they argue, "Markets provide strong
incentives for firms to cater to the demands of consumers, and firms
will compete to meet those demands, whether or not those demands
represent the wisest choices." Moreover, they state, "The key
point here is that for all their virtues, markets often give companies a
strong incentive to cater to (and profit from) human frailties, rather
than to try to eradicate them or to minimize their effects."
This view suggests that sellers offering "unhealthy"
products are the most profitable. An alternative view is that sellers
can systematically profit when marketing "healthier" products
to customers interested in controlling their weight. The finding that 51
percent of adult Americans want to lose weight indicates that many
potential customers are looking for products that will help them to lose
weight. Food and restaurant businesses have been increasingly
experimenting with smaller plates and packages to meet growing consumer
demand for products that help them control their weight. Research
indicates that the number of small-plate and smaller-portion items at
restaurants has grown 32 percent since 2009. Of course, few customers
would single out calories as the only attribute of interest. Calories
are one attribute, along with price, taste, convenience, appearance,
size, storage, and others.
"Stealth health" is the tactic that food and restaurant
businesses employ to make products healthier when they do not want to
directly inform customers they are cutting fat or salt. A concern is
that customers sometimes connect "healthy" with "less
taste"--especially when foods are considered indulgences, such as
mashed potatoes, gravy, stuffing, and other items typically loaded with
sodium and fat. Otherwise, companies are quick to tout nutritional
improvements for foods aimed at health-conscious consumers.
Evidence/A widely reported study by Shu Ng and Barry Popkin
concludes that 16 of the nation's leading food and beverage
companies sold 6.4 trillion fewer calories in 2012 than they did in
2007. Those companies had pledged to lower calories and have so far
exceeded their 2015 goal by more than 400 percent. However, it remains
unclear what effect this reduction in calories exerts on population
weight. Consumers may substitute other products and alter their
behaviors in other ways that make predictions ambiguous at best.
Clearer evidence comes from a 2013 U.S. Department of Agriculture
study by Steve Martinez showing rapid growth of new products appealing
to weight-conscious consumers. Health- and nutrition-related claims per
product increased from 2.2 in 2001 to 2.6 in 2010, which Martinez
interprets as competition fostering a more complete representation of
products' health and nutritional attributes. The study suggests
that growing demand for food products that contribute to overall health
beyond basic nutrition provided incentives to manufacturers to supply
and promote those products. Again, there is no direct evidence that
population weight has changed as a result.
A 2011 Hudson Institute study of Nielsen sales data from 2007
through 2011 reports similar results. Food products from 15 of the
largest food and beverage manufacturers were classified into
'traditional" and "better-for-you" (BFY) categories.
BFY products included those designated as "diet,"
"lite," "fewer calories," or 'zero
calories" (e.g., Lean Cuisine, Coke Zero, Trop50), as well as
'good" foods including whole-grain products and healthier
traditional product formulations, such as Cheerios, Dannon yogurt, and
Nabisco Wheat Thins. Traditional products (e.g., Pepsi, Kellogg's
Frosted Flakes, and Hellmann's Mayonnaise) accounted for 61.4
percent of sales, while "diet" and "good" products
each accounted for 19.3 percent of sales. Combined, BFY products
accounted for less than 40 percent of sales but more than 70 percent of
sales growth. Again, there is no direct evidence that population weight
has changed as a result.
Weight loss products / A survey of more than 6,000 people in six
countries (Australia, Canada, India, South Africa, the United Kingdom,
and the United States) found that more than half of consumers are
interested in buying wearable technologies such as fitness monitors for
tracking physical activity and managing their personal health. One
report finds more than 200 mobile health care apps co-branded with
health care organizations.
There are more than 40,000 health, fitness, and medical apps
currently available. An estimated 8,786 disease prevention and healthy
living apps are also widely available. Those apps focus on factors
associated with overall wellness, such as healthy eating, weight
management, fitness, healthy living, smoking cessation, stress
management, and sleep. They display information, show preloaded
instructions for diet and fitness, record and display user-entered data,
and track weight measurements over time.
One market test of apps is whether they encroach on the turf of
more traditional weight-loss businesses. Falling share prices of several
widely recognized diet companies suggest their businesses are being
undermined by mobile technology. Jenny Craig has performed poorly with
its plan of prepackaged meals with nutritional counseling. Nutrisystem
has struggled with its model that provides home-delivered meal plans and
nutritional counseling. Weight Watchers, too, has struggled with
attracting new customers. Weight Watchers in 2012 added a mobile app for
tracking food and activity, but the feature was an add-on to its paid
subscription. Many apps, however, are free and do not require monthly
payments for a base subscription bundled with services such as menus and
counseling.
In sum, rapid expansion of weight-loss and health apps is strong
evidence that consumers are sampling the growing number of nudges
offered by markets for weight loss and health apps. Markets are, in
effect, the choice architects of these nudges and businesses have
financial incentives to meet this growing demand. However, the evidence
on whether these nudges are effective is more promising than certain at
this point.
MARKET AND GOVERNMENT NUDGING
Nudge theory can play a role in helping us to lose weight, despite
the reality that all choice architects--government or market--are
imperfect. Experimentation is the key to overcoming choice
architects' imperfections, including flawed decisionmaking, basing
nudges on pervasive myths regarding weight loss, and the inability to
know individual preferences. Any of those imperfections could derail
people's weight loss efforts, but market choice architects hold
significant advantages over those in governments.
Businesses face "market tests" in a world where consumers
may reject products that fail to deliver value. Consumers eventually
understand whether marketing claims are real or not, with poorly
designed products being improved or simply removed from markets. So far,
the evidence is imperfect on whether currently available products result
in weight loss, but ongoing feedback from consumers helps to weed out
poor designs. All product attributes--including calories, size,
packaging, taste, simplicity, and pricing--receive market scrutiny.
Government choice architects do not face comparable "market
tests" and thus face greater problems overcoming their
imperfections. Poor products do not directly jeopardize the financial
solvency of governments because they do not face profit constraints.
Businesses that provide nudges that do not enhance consumer welfare are
not profitable for long in competitive environments such as those aimed
at weight-conscious consumers.
Thaler and Sunstein argue that we should not be too concerned about
imperfect or ineffective nudges. They argue that the noncoercive nature
of nudges allows easy exiting by those wishing to avoid them--including
nudges that are poorly designed. This view suggests there is little harm
in designing numerous nudges because some might help people to meet
their weight-loss goals. This is not an approach, however, that allows
researchers to easily parse out effective from ineffective nudges or
discern what interrelationships might exist among the many nudges. It is
also possible that nudges that turn out to be harmful might never be
discarded.
This view that ineffective but easily avoided nudges are not
harmful fails to recognize the superiority of markets in helping choice
architects overcome their various imperfections. Consumers directly
signal to market choice architects which products are ineffective or
detrimental. They simply stop buying them, thus leaving little doubt
that product attributes do not meet their approval. Harmful products
might even yield costly lawsuits directly aimed at businesses.
Businesses read these signals routinely because they threaten their
financial health.
Government nudging has fewer feedback mechanisms to help get the
nudges "right." Government revenues do not rise or fall to
signal the good from the bad. Government employees typically are not
fearful that failed products will put their jobs in jeopardy. Effective
feedback becomes even more problematic when governments supply many
nudges based on the view that they pose little harm because citizens can
easily avoid them. Feedback is limited at best for government choice
architects in an environment where ineffective nudges do not directly
jeopardize their jobs or financial viability.
Markets are also superior at being true to the noncoercive spirit
of nudging theory. Businesses do not have incentives to keep nudging
people who are unwilling to change their behavior. Businesses may try to
educate customers unwilling to buy their products, but financial
incentives are a clear limit facing businesses that continue nudging
consumers toward products they do not purchase. Low-calorie cookies, for
example, may sit on the shelves no matter where the grocer locates them
or how many advertising dollars are invested. Markets will eventually
get the message and either alter product attributes or drop products
altogether.
Governments have considerably more latitude to nudge people
repeatedly toward behavior that choice architects believe improves their
lives. It can be difficult to determine when changes in choice
architecture cross the line into coercion, especially when government
choice architects believe people exhibit decisionmaking flaws or are
resistant to educational nudges. A slippery slope problem may arise.
Noncoercive but ineffective nudges may engender subtle, but perhaps
coercive, policies (e.g., taxes and subsidies) as government choice
architects remain convinced that people's behavior should change.
Government choice architects therefore must exercise considerable
restraint in resisting urges to "ramp up" the pressure on
citizens who resist government nudges.
Role for government / An appropriate role for government is to
facilitate market correction of fraudulent practices and claims. For
instance, the Federal Trade Commission recently fined several
weight-loss businesses $34 million after it concluded that they made
deceptive advertising claims that their products would help people lose
weight with little effort. The $34 million included a $26.5 million
settlement against Sensa Products, which markets a dietary supplement
called Sensa. A Sensa advertisement stated that "whether you need
to lose 10 pounds, 50 pounds, or more, now you can without dieting.
Simply sprinkle Sensa on, eat all the foods you love, and watch the
pounds come off." Policies that penalize or remove fraudulent
claims help nudge weight-conscious consumers toward effective products
designed by choice architects in markets.
Another potential role for government is to experiment with
market-based nudges on its own workforce or perhaps to experiment with
social programs whose costs are influenced by obesity. However,
government may be resistant to utilizing nudges that yield cost savings
because government does not face profit motives and thus may be
uninterested in raising profit. Government choice architects may also
prefer designing their own nudges, even though they face higher hurdles
in designing effective nudges than market choice architects do.
CONCLUSION
Obesity remains a serious health problem and it is no secret that
many people want to lose weight. Behavioral economists typically argue
that nudges help individuals with various decisionmaking flaws to live
longer, healthier, and better lives. Even if the obese are not subject
to those flaws, many are still interested in products that help them
lose weight.
Nudges remain well-intentioned but blunt tools for lowering
population weight. This conclusion is not surprising given the current
state of knowledge. Researchers have yet to reach a consensus on what
specific causes for excessive weight gain are most important in
explaining rising obesity prevalence. There are also relatively few
facts about how to lose weight successfully, and the evidence does not
support many widely held beliefs about effective weight loss. The
empirical evidence also indicates that nudges do not always work as
planned.
Nonetheless, market nudges play a potentially important role in
helping citizens to control their weight. The evolving markets in
dieting apps, weight-loss programs, and "healthy" products
indicate that many consumers are willing to purchase products that help
them with their weight-loss goals. However, the evidence so far is more
promising than conclusive that markets have been effective in nudging
people to lose weight.
Experimentation is the key to overcoming choice architects'
imperfections, including flawed decisionmaking, basing nudges on various
myths regarding weight loss, and the inability to know individual
preferences. Choice architects in markets hold significant advantages
over those in government in their efforts to overcome these
shortcomings. Unlike government, businesses face "market
tests" in a world where consumers reject products that fail to
deliver value. Markets also hold an advantage in sticking to the
noncoercive spirit of nudging theory.
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MICHAEL L. MARLOW is a professor of economics at California
Polytechnic State University and an affiliated senior scholar of the
Mercatus Center at George Mason University.
This article is based on his paper, "Weight Loss Nudges:
Market Test or Government Guess?" Mercatus working paper, September
2014.