People exaggerate their own skills. they are optimistic about their prospects and overconfident about their guesses, including which managers to pick.

I think we also have learned the lesson that we have to have better incentive structures.

So, what's a nudge? A nudge is some small feature of the environment that attracts our attention and alters our behavior.

The assumption that everybody will figure out how much they have to save and then will just implement that plan is obviously preposterous.

"Save more tomorrow" is a nudge to help people do what they know they want to do, which is save more, but they can't bring themselves to save more now. Just like many of us are planning to go on diets next month, or maybe in two months, certainly not tonight.

If rather than setting the minimum balance as the lowest possible amount, so we keep people in debt for as long as possible, we raise the minimum payment and encourage people to pay off their credit cards, we're going to make less money, but we're going to have costumers that are more solvent.

A good rule of thumb is to assume that everything matters.