The Science of Nudging: How Policy Can Empower Citizens Without Exploiting Them

What does it truly mean to nudge someone, to guide behavior without crossing into manipulation? In this episode of Business Talk, we sit down with Dr. Riccardo Viale, Full Professor of Behavioral Sciences and Cognitive Economics at the University of Milan-Bicocca and LUISS, to explore the core ideas from his book Nudging. Drawing on Herbert Simon's foundational concept of bounded rationality, Dr. Viale argues that humans are not irrational, rather, they are adaptively rational, relying on heuristics to navigate an overwhelmingly complex world. The real question, he suggests, is not whether to nudge, but how, distinguishing between nudges that empower citizens through feedback, transparency, and informed choice, and those that silently exploit cognitive biases like inertia, status quo bias, and limited attention. From organ donation defaults in Austria to China's social credit system and the invisible algorithms of surveillance capitalism, Dr. Viale maps the thin but critical line between a policy tool that serves democracy and one that undermines it, offering three practical principles for governments and organizations committed to ethical behavioral design. This podcast is brought to you by Global Management Consultancy. To learn more about our activities, follow us on our social media platforms listed below: 1) LinkedIn: https://www.linkedin.com/in/hellomrbhatt/ 2) X: https://x.com/hellomrbhatt Disclaimer: 1. The background music incorporated in this video is the intellectual property of its respective developer and is protected under applicable copyright laws. Notwithstanding that it is a free-to-use version, Business Talk, Global Management Consultancy, and Deepak Bhatt do not own, and expressly do not claim, any rights, title, or interest in or to this music. 2. Dr. Riccardo Viale shared key insights from his book, Nudging, in an engaging episode of the Business Talk podcast. The uploaded video contains copyrighted content, so changing any graphics, music, or on-screen appearance of the author or host is not allowed.