The Transformation of Nudge Theory in the Age of Artificial Intelligence: From Digital Nudges to Hypernudging in the Context of Behavioral Economics
Chapter from the book: Polat, M. (ed.) 2025. Modern Microeconomics: From Theory to Practice.

Muhammed İkbal Tepeler
Atatürk University
Murat Özdemir
Atatürk University

Synopsis

This chapter examines how artificial intelligence (AI) and big data–driven digital technologies are reshaping Nudge Theory, a core framework within behavioral economics. In its classical formulation, a nudge refers to an intervention that predictably alters behavior through the design of choice architecture, without removing options, restricting freedom of choice, or significantly changing economic incentives. Yet the proliferation of digital platforms and the integration of AI-enabled algorithms into decision environments have transformed nudges into more personalized, dynamic, scalable, and measurable interventions. Against this backdrop, the chapter offers an integrated discussion of (i) the automation of choice architecture through “autonomous choice architects,” whereby algorithms increasingly determine what options are shown and how they are presented; (ii) digital nudges implemented via user interface elements such as defaults, salience, framing cues, social proof, and scarcity messages; and (iii) hypernudges, which operate as continuously adapting systems of interventions based on real-time feedback, dynamic personalization, and ongoing reconfiguration. While highlighting the potential of AI-supported nudging to promote beneficial outcomes in areas such as public services, health behavior, sustainability, and digital user experiences, the chapter also foregrounds a set of ethical and societal concerns. These include opacity and accountability gaps, privacy and data protection risks, growing power asymmetries between those who design algorithmic environments and those exposed to them, the expansion of manipulative “dark patterns,” and possible erosion of individual autonomy and self-governance. The chapter argues that the welfare-enhancing promise of AI-driven nudges depends on robust safeguards—ethical design principles, transparency and disclosure requirements, enforceable accountability mechanisms, and meaningful opt-out choices. Ultimately, it positions AI-enabled nudging as a powerful but governance-sensitive tool at the intersection of behavioral economics and digital technology.

How to cite this book

Tepeler, M. İ. & Özdemir, M. (2025). The Transformation of Nudge Theory in the Age of Artificial Intelligence: From Digital Nudges to Hypernudging in the Context of Behavioral Economics. In: Polat, M. (ed.), Modern Microeconomics: From Theory to Practice. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub1120.c4542

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Published

December 29, 2025

DOI