 Instead of nudging people what if we just pay them to do the right thing? Is that better or worse? It depends on the cost of decisions and cost of errors, so You could if you want to encourage people to save more. There's first a question whether that's a good idea But let's see if it is just paying more. Yeah in Denmark economic incentives have had significantly less effect in promoting savings than automatic enrollment There's every reason to believe that in the an area that isn't you know hugely important But isn't trivial that is paper usage if you have a double-sided default for printing an Institution will save much more money than if it jacks up than if the jet price of paper is jacked up So often a little nudge changing the default rule giving some people some information Will have a very significant effect on behavior more so than tax incentives or other economic incentives and That's good by the way Partly because on the cost side it's much less You're not sticking the taxpayers with anything on the other hand. There are some domains where incentives have a bigger effect We have evidence that Taxes for cigarettes have a big impact in reducing smoking. I think presumptively that's a very good idea 480,000 Americans die every year if we can cut that number. That's a good thing Whereas the warnings we now have on cigarettes seem to be less effective than Increasing the incentive lot to smoke