ISAS Insights

Nudges are a low-cost intervention that works towards inducing individuals to make voluntary choices which can potentially enhance individual and collective well-being. The paper follows up on this assertion with some empirical examples from India, among other places. We do not always act rationally. However our 'irrational' behaviour is often predictable. This predictability allows policymakers to induce desired, albeit voluntary, behavioural changes, or nudge without constraining choices. This paper discusses the analytical underpinnings of nudges and provides a brief survey of actual nudges deployed by policymakers across the world. The concluding part makes a case for the use of nudges to complement policy initiatives in India.