TY - JOUR
T1 - Nudging the financial market?
T2 - A review of the nudge theory
AU - Cai, Cynthia Weiyi
PY - 2020/12
Y1 - 2020/12
N2 - 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.
AB - 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.
KW - Financial market
KW - Investment decision-making
KW - Nudge
UR - http://www.scopus.com/inward/record.url?scp=85063577800&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85063577800&partnerID=8YFLogxK
U2 - 10.1111/acfi.12471
DO - 10.1111/acfi.12471
M3 - Article
AN - SCOPUS:85063577800
SN - 0810-5391
VL - 60
SP - 3341
EP - 3365
JO - Accounting and Finance
JF - Accounting and Finance
IS - 4
ER -