Nudge Economy
Written by : Gauri Jaitely, Delhi University What's a Nudge? In simple words Nudge means "to poke someone or give a light push." But what is Nudge Theory/Economy? Nudge theory is a concept in Behavioural Economics and Political theory as it includes psychological, political and economic aspects. It proposes the concept of "Positive Reinforcement" as to influence the behaviour of a group or an individual without any force and it seems to be a natural change in the economy and the lives of people. For instance, in simple words, if a parent wants its child to be fit, s/he must get things which are healthy for the child rather than keeping cookies or chocolates in their environment as environment or a situation will bring a change in the habit. A nudge can be defined as any aspect of choice architecture that alters an individual’s behaviour in a predictable way, without limiting his choices or significantly changing incentives. The question ...