Nudge Theory

We could benefit from the presence of this Nobel winner on this forum, and he might learn something from us as well. Professor Thaler said on Monday that the basic premise of his theories was that, “In order to do good economics you have to keep in mind that people are human.”

Asked how he would spend the prize money, he replied: “This is quite a funny question.” He added: “I will try to spend it as irrationally as possible.”

What about the Fudge Theory?

Well, knowing next to nothing about Fudge theory(or Nudge theory), I can only suspect that Nudge theory would consider fudging to be a misbehaving or irrational behavior in an economic context(perhaps even immoral), and would suggest nudging it towards a more desirable outcome so as to avoid unwanted consequences.