Nudging the financial market? A review of the nudge theory

Cynthia Weiyi Cai

Research output: Contribution to journalArticlepeer-review

20 Citations (Scopus)
291 Downloads (Pure)


A systematic review of the nudge literature and an examination of its applications across different domains reveals that:(i) a nudge, in the sense of using choice architecture to push people to choose desired results, works well; and(ii) a nudge, in the sense of pushing people to choose desired results so that people will be better off, remains questionable. In financial markets, regulators and financial intermediaries currently use nudge theory to: (i) adjust how investment choices are presented to investors; and (ii) provide information in a selective way. Besides nudging investors, it is also possible for regulators to nudge financial intermediaries towards making more ethical decisions.
Original languageEnglish
Pages (from-to)3341-3365
Number of pages25
JournalAccounting and Finance
Issue number4
Early online date28 Mar 2019
Publication statusPublished - Dec 2020


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