Use of Behavioural Economics in Development o...

Use of Behavioural Economics in Development of Various Sectors in India

Author Name : Ria Kansal, Rukshad Vandrewala, Rachit Agrawal, Rakesh Khandhadia, Rishita Agarwal

DOI: https://doi.org/10.56025/IJARESM.2022.1082237

ABSTRACT

A cognitive bias is a systematic pattern of deviation from norm or rationality in judgment. Individuals create their own "subjective reality" from their perception of the input. An individual's construction of reality, not the objective input, may dictate their behaviour in the world. Thus, cognitive biases may sometimes lead to perceptual distortion, inaccurate judgment, illogical interpretation, or what is broadly called irrationality. Recently psychological research has found ways to exploit these cognitive biases to coax the participants into making certain decisions. Governments, firms and researchers around the world have been experimenting with these cognitive biases to find ways to push citizens, customers and participants into making decisions that are beneficial to them; this is called Behavioural Economics. Through this research paper we shall try to analyse and understand the role of behavioural economics in national decision making, examine socio-economic problems within the country and have presented solutions: some that are used overseas and can be remodelled to fit the Indian predicament and other original, Avant ideas, that we have developed through comprehensive research specifically modelled to the Indian scenario.

Keywords: Behavioural Economics, Socio-Economic Development, Healthcare, Financial Inclusion, Education, Policy Recommendations, Behavioural Economics in India.