- ‘Nudging’ refers to altering the decision-making environment in the context of biases and ‘irrational’ behaviour that decision-makers often display.
Why is a nudge required in india?
- Toilets built at great expense are not used.
- New tuberculosis variants spread because patients do not complete the course of drugs prescribed by hospitals.
- Rash driving on roads kills thousands of people every year.
- Parents do not immunise children even when it does not cost them anything. This shows how behavioural quirks lead to public policy failures. Hence, there is a need for behavioural public policy wherein behavioural research is integrated into public policy.
- Behavioural interventions can have the potential to increase the efficacy of social spending.
- Public policy is often focused on the problems of market failure or state failure. Far less attention is paid to the deeper problem of social failures.
- Thus, the focus and direction of nudges should be influenced by individuals’ ideas and concerns about their behaviour.
- The theory of nudge is also being developed, which uses micro cues, positive reinforcements and indirect suggestions as ways to influence the behaviour of individuals or groups.
- Nudges are small changes in the environment that are easy and inexpensive to implement. Several techniques exist for nudging, for example.
- Default option: It is the option that an individual automatically receives if they do nothing. People are more likely to choose a particular option if it is the default option, like a greater number of consumers chose renewable energy if it is made the default option.
- Social-proof heuristics: Refers to individuals’ tendency to look at others’ behaviour to help guide their behaviour. For example, if some people in a group tend to quit smoking, others also think to quit.
- The increasing salience of desired option: When an individual’s attention is drawn towards a particular option, that option will become more salient to the individual, and they will more likely choose that option.
Criticism of Nudge Theory
- Behavioural sciences may design better social sector programs, but they are of limited use unless bigger challenges like rapid economic growth, poverty reduction and macroeconomic stability are addressed and solved effectively.
- It may fall prey to the paternalistic view that planners know better than citizens.
- Behaviour patterns vary in different states.
- Policy formulation based on one/certain behavioural approach may not go down well with all states.
- Their impact is short-term, and they don’t lead to lasting changes.
- Nudges diminish the autonomy of the individual
- Behavioural scientists have shown that people value loss avoidance more than gain acquisition. Hence, the ‘loss norm’ can be followed to induce people to take advantage of public policies crafted for them. (Loss norm= disadvantages due to non-following of public welfare policies.
- The government already uses choice interventions like subsidies and taxes to shape citizen behaviour. However, more institutional mechanisms are needed to advocate behavioural research to improve public policy design and deliver better outcomes for taxpayer money.
- Their impact is short-term, and they don’t lead to lasting changes.
- Nudges diminish the autonomy of the individual
- Behavioural scientists have shown that people value loss avoidance more than gain acquisition. Hence, the ‘loss norm’ can be followed to induce people to take advantage of public policies crafted for them. (Loss norm= disadvantages due to non-following of public welfare policies.
- The government already uses choice interventions like subsidies and taxes to shape citizen behaviour. However, more institutional mechanisms are needed to advocate behavioural research to improve public policy design and deliver better outcomes for taxpayer money.
