Abstract
Nudging is an important economic tool for governments as well as private corporations. While it is a common assumption that nudging can help maximize social benefit by altering choice architecture there is still much to research regarding the effects of nudging too much. In this paper, several mathematical models based on different assumptions have also been created to explain the hypothesis that excessive nudging can cause a decrease in the desired response. Psychological phenomena have been explored to posit reasons for this behavioural irrationality. After reviewing previous literature of experiments with multiple ‘doses’ of nudging, it is concluded that nudging too much may in fact have an adverse effect. A comparison to a Laffer curve derivation in this paper is the graphical model that future research may experimentally find to prove the hypothesis.
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