Nudge
“Nudge” This word came to my mind when Mr Richard Thaler got Nobel Prize about Behavioral Economics. One of My friend who reside in USA got this book in library. He refer this book to me.
Then I bought this book “Nudge” written by Richard Thaler, year 2017.
Read This book…. Make my thought about this miraculous world “Nudge” and alert about consequences on different platform of social media. sometime it is beneficial but in long term it is dangerous.
· First asked the Question How Behavioral economics affect Rural India ? We are looking development everywhere but in reality people are not getting as we are looking like jobless growth to Mr Jean Dreze in Times Litfest refer to attached video…Date 26/11/2017
https://www.facebook.com/TimesLitFestDelhi/videos/1768761986475868/?t=5
· I write one model in which I depicts how crony capitalism spread over across the world through “Nudging”. If this tool adopted by crony capitalist and corrupt ruler then we can imagine deprivation and inequality in society. This is negative and dangerous point for us “common people”. Refer to below attachment.
https://www.linkedin.com/feed/update/urn:li:activity:6459788229624336384
· Dr Balsingh Rajput IPS Maharashtra posted a post about some revolutionary word in next 10 to 15 yrs on LinkedIn then I said you should add one more revolutionary word “Nudge” refer to below attachment – Date 21/10/2018
· I have posted a post about this word on FB also refer to below attachment. 9/10/2017.
Now we are looking present economic survey 2018-19 presented by Ms Nirmla Sitharaman & Chief Economic Advisor Mr Krishnamurthy Subramanian. Key and new word are “Nudge” to achieve 5 trillion USD economy.
Can Nudging increase investment in economy..This can be done through change in behavior pattern of purchasing power and behavior pattern of investment of common people..
Nudging indicates economic model where -
- Intensity in disinvestment
- Intensity in Privatization
- Deterioration in subsidy
- Low saving and high purchasing power
Past Economic Model will be reverse or social inclined model.
Can present economic model is good for India where
- Poverty and unemployment is big problem. Half of the population are poor.
- Income of, half or more than half of population is very low.
- In India, Population is approximately 130 cr with 2.2 trillion dollar economy while In China, 142 cr population with 12.4 trillion dollar economy. we can see gap.
- Always inflation is big concern
- Deglobalization and Protectionism economic policy are spreading across the world particularly in big economy.
Now, matter of concern is Nudging indicates which economic model who is irrelevant for India. Disparity is big problem it might be through this model gap between rich and poor can become high in coming days. India can bear only socioeconomic model.
Now submission are -
- Can we are matured enough to adopt this ?
- Can our ruler ensure this cannot misuse ?
- When and how they changed people behavior towards purchasing power ?
- In Australia, Britain and Singapore , There is department who checks people behavior for making government policy.
We can understand "Nudge" regarding government policy in Australia, Singapore and Britain ...
- https://www.centreforpublicimpact.org/case-study/new-zealands-public-financial-management-reforms/
- https://www.centreforpublicimpact.org/observatory
- https://www.centreforpublicimpact.org/case-study/behavioural-insights-team-in-the-uk/
- https://en.wikipedia.org/wiki/Behavioural_Insights_Team
Written By Ajay Kumar
Quant l AI l Finance
5yBehavioral psychology should be considered a revelation on how human mind works since it affects every aspect of human decision process. Evolution may have made human mind quite capable in various aspects but the order of decision making capabilities haven't change much. The order is; perception of long term benefit which is superseded by perception of convenience/pleasure which is again superseded by perception of threat. 1- Perception of long term benefit: Kids are taught good moral values of truthfulness, kindness, hardwork etc because the one teaching them perceives such qualities would lead to better life and satisfaction. 2- Perception of convenience/pleasure: The same kids when faced with a situation where (s)he needs to make a decision, may occasionally go for the convenient route even if it contradicts #1. Convenience trumps perception for long term benefit. Consider examples like cheating in exams (convenience), bully less fortunate (sense of superiority and therefore pleasure). 3- Perception of threat: Decisions made under perception of threat overrides every other decision circuits in mind. The same kid, in the example followed thus far, would have elaborate plan to conceal the effort to cheat, or abandon the action of bullying upon facing a threat of injury or punishment. It is important to note the difference between examples in #3 and #2; the rewards of the chosen action are same (convenience and pleasure). However, the existence of threat would make or break the decision.