Insurance forms that make no sense. Subscriptions that can’t be cancelled. A never-ending blizzard of automated notifications. Where does all this sludge come from — and how much is it costing us? (Part one of a two-part series.)
- SOURCES:
- Benjamin Handel, professor of economics at UC Berkeley.
- Neale Mahoney, professor of economics at Stanford University.
- Richard Thaler, professor of economics at The University of Chicago.
- RESOURCES:
- “Selling Subscriptions,” by Liran Einav, Ben Klopack, and Neale Mahoney (Stanford University, 2023).
- “The ‘Enshittification’ of TikTok,” by Cory Doctorow (WIRED, 2023).
- “Dominated Options in Health Insurance Plans,” by Chenyuan Liu and Justin Sydnor (American Economic Journal: Economic Policy, 2022).
- Nudge (The Final Edition), by Richard Thaler and Cass Sunstein (2021).
- “Frictions or Mental Gaps: What’s Behind the Information We (Don’t) Use and When Do We Care?” by Benjamin Handel and Joshua Schwartzstein (Journal of Economic Perspectives, 2018).
- “Adverse Selection and Switching Costs in Health Insurance Markets: When Nudging Hurts,” by Benjamin Handel (National Bureau of Economic Research, 2011).
- EXTRAS:
- “People Aren’t Dumb. The World Is Hard. (Update)” by Freakonomics Radio (2024).
- “All You Need is Nudge,” by Freakonomics Radio (2021).
- “How to Fix the Hot Mess of U.S. Healthcare,” by Freakonomics Radio (2021).
- “Should We Really Behave Like Economists Say We Do?” by Freakonomics Radio (2015).

500. What Exactly Is College For?
We think of them as intellectual enclaves and the surest route to a better life. But U.S. colleges also operate like firms, trying to differentiate their products to win market share and prestige points. In…
Is the U.S. Really Less Corrupt Than China — and How About Russia? (Ep. 481 Update)
The political scientist Yuen Yuen Ang argues that different forms of government create different styles of corruption. The U.S. and China have more in common than we’d like to admit — but Russia is a…
499. Don’t Worry, Be Tacky
The British art superstar Flora Yukhnovich, the Freakonomist Steve Levitt, and the upstart American Basketball Association were all unafraid to follow their joy — despite sneers from the Establishment. Should we all be more willing…
498. In the 1890s, the Best-Selling Car Was … Electric
After a huge false start, electric cars are finally about to flourish. We speak with a technology historian about this all-too-common story, and what it means for innovation everywhere.
497. Can the Big Bad Wolf Save Your Life?
Every year, there are more than a million collisions in the U.S. between drivers and deer. The result: hundreds of deaths, thousands of injuries, and billions in damages. Enter the wolf …
How to Change Your Mind (Ep. 379 Update)
There are a lot of barriers to changing your mind: ego, overconfidence, inertia — and cost. Politicians who flip-flop get mocked; family and friends who cross tribal borders are shunned. But shouldn’t we be encouraging…
496. Do Unions Still Work?
Organized labor hasn’t had this much public support in 50 years, and yet the percentage of Americans in a union is near a record low. A.F.L-C.I.O. president Liz Shuler tries to explain this gap —…
495. Why Are There So Many Bad Bosses?
People who are good at their jobs routinely get promoted into bigger jobs they’re bad at. We explain why firms keep producing incompetent managers — and why that’s unlikely to change.
494. Why Do Most Ideas Fail to Scale?
In a new book called The Voltage Effect, the economist John List — who has already revolutionized how his profession does research — is trying to start a scaling revolution. In this installment of the…
Why Does the Richest Country in the World Have So Many Poor Kids? (Ep. 475 Update)
Among O.E.C.D. nations, the U.S. has one of the highest rates of child poverty. Until recently, it looked as if Washington was about to change that. But then … Washington happened.