Behavioral Policies – Nudge

Nudge gives a deep insight into people’s behavioural tendencies and is therefore useful for formulating behavioural policies. It is essential to get an insight into people’s behaviour, as more often they think emotionally and reflexively instead of being rational or logical.

This makes it absolutely essential to analyze human behaviour in order to determine how people usually make decisions, so that policies can be defined accordingly. Nudge is a tool that helps in this regard. It observes people’s behavioral patterns and helps develop methods that can then be used to subtly change their behaviour. Hence, people’s behaviour can be altered in a positive manner without being intrusive. Such behavioural changes are permanent.

To understand how Nudge functions, let’s look at the behavioral aspects that it influences.

Some of the behavioural attributes of people include:

  • People usually prefer opting for things they perceive as normal
  • Most people select default options
  • People can make better choices if they get real-time feedback

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