IDEAS home Printed from https://ideas.repec.org/a/igg/jabe00/v11y2022i1p1-15.html

Nudge: A Bridge Between Choice and Desired Decision

Author

Listed:
  • Vikas Pujara

    (Manav Rachna International Institute of Research and Studies, India)

  • Bhavesh Prakash Joshi

    (Manav Rachna International Institute of Research and Studies, India)

  • Charu Virmani

    (Manav Rachna International Institute of Research and Studies, India)

Abstract

The "Real" decision often varies from the "Rational" decision. The Real or the actual behaviour of people is quite often biased and differs from the rational decision framework which has been put in place by classical economics. The irrational or undesired behaviour displayed by the people even in an informed public policy is a classic example of this. The purpose of this paper is to try and explain the classical nudge theory which ‘nudge’ the people towards a desirable behaviour. We need to contemplate if we could use it as a method to awaken the motivate us Indians to invest or if it could help us to devise policy or the marketing campaigns in such an effective manner that it could help us bridge the gap of non-investment behaviour. Researcher has considered the 6 Nudge principles to prepare a questionnaire which has been duly filled online by 135 respondents. It has been shown that there is an impact of Nidge as a decision making tool for policy formation.

Suggested Citation

  • Vikas Pujara & Bhavesh Prakash Joshi & Charu Virmani, 2022. "Nudge: A Bridge Between Choice and Desired Decision," International Journal of Applied Behavioral Economics (IJABE), IGI Global Scientific Publishing, vol. 11(1), pages 1-15, January.
    • Handle: RePEc:igg:jabe00:v:11:y:2022:i:1:p:1-15
    as

    Download full text from publisher

    File URL: https://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/IJABE.302140
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brad M. Barber & Terrance Odean, 2001. "Boys will be Boys: Gender, Overconfidence, and Common Stock Investment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(1), pages 261-292.
    2. Richard H. Thaler, 2000. "From Homo Economicus to Homo Sapiens," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 133-141, Winter.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Danny Buckley & Natalia Vershinina & Peter Rodgers, 2025. "Exploring Informal Work: Gaining Legitimation through Nudging," Work, Employment & Society, British Sociological Association, vol. 39(2), pages 267-289, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luc Arrondel, 2020. "Financial literacy and French behaviour on the stock market," Working Papers halshs-02505320, HAL.
    2. Hestermann, Nina & Le Yaouanq, Yves, 2018. "It\'s not my Fault! Self-Confidence and Experimentation," Rationality and Competition Discussion Paper Series 124, CRC TRR 190 Rationality and Competition.
    3. Caliendo, Frank & Huang, Kevin X.D., 2008. "Overconfidence and consumption over the life cycle," Journal of Macroeconomics, Elsevier, vol. 30(4), pages 1347-1369, December.
    4. Mushinada, Venkata Narasimha Chary, 2020. "Are individual investors irrational or adaptive to market dynamics?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 25(C).
    5. Jinesh Jain & Nidhi Walia & Himanshu Singla & Simarjeet Singh & Kiran Sood & Simon Grima, 2023. "Heuristic Biases as Mental Shortcuts to Investment Decision-Making: A Mediation Analysis of Risk Perception," Risks, MDPI, vol. 11(4), pages 1-22, April.
    6. Lazear, Edward P., 2016. "Overconfidence and Occupational Choice," Research Papers 3419, Stanford University, Graduate School of Business.
    7. Chhatwani, Malvika & Parija, Arpit Kumar, 2023. "Who invests in cryptocurrency? The role of overconfidence among American investors," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 107(C).
    8. Knutsen Julie Therese & Malin Mirela & West Tracey & Brimble Mark, 2017. "True Links: Precursory Lessons from Golf for Effective Financial Behaviour," Financial Planning Research Journal, Sciendo, vol. 3(1), pages 12-25.
    9. Bobba, Matteo & Frisancho, Veronica, 2022. "Self-perceptions about academic achievement: Evidence from Mexico City," Journal of Econometrics, Elsevier, vol. 231(1), pages 58-73.
    10. Foliano, Francesca & Tonei, Valentina & Sevilla, Almudena, 2024. "Social restrictions, leisure and well-being," Labour Economics, Elsevier, vol. 87(C).
    11. Anne Corcos & Yorgos Rizopoulos, 2011. "Is prosocial behavior egocentric? The “invisible hand” of emotions," Post-Print halshs-01968213, HAL.
    12. Prokudina, Elena & Renneboog, Luc & Tobler, Philippe, 2015. "Does Confidence Predict Out-of-Domain Effort?," Discussion Paper 2015-055, Tilburg University, Center for Economic Research.
    13. Söderlind, Paul, 2009. "The C-CAPM without ex post data," Journal of Macroeconomics, Elsevier, vol. 31(4), pages 721-729, December.
    14. Brenøe, Anne Ardila & Eyibak, Zeynep & Heursen, Lea & Ranehill, Eva & Weber, Roberto A., 2024. "Gender Identity and Economic Decision Making," IZA Discussion Papers 17564, IZA Network @ LISER.
    15. van Rijn, Jordan, 2018. "The Effect of Membership Expansion on Credit Union Risk and Returns," Staff Paper Series 588, University of Wisconsin, Agricultural and Applied Economics.
    16. Bertocchi, Graziella & Brunetti, Marianna & Torricelli, Costanza, 2014. "Who holds the purse strings within the household? The determinants of intra-family decision making," Journal of Economic Behavior & Organization, Elsevier, vol. 101(C), pages 65-86.
    17. Cakici, Nusret & Zaremba, Adam, 2022. "Salience theory and the cross-section of stock returns: International and further evidence," Journal of Financial Economics, Elsevier, vol. 146(2), pages 689-725.
    18. Stephanie Moulton & Cäzilia Loibl & Anya Samak & J. Michael Collins, 2013. "Borrowing Capacity and Financial Decisions of Low-to-Moderate Income First-Time Homebuyers," Journal of Consumer Affairs, Wiley Blackwell, vol. 47(3), pages 375-403, November.
    19. Jonathan F Schulz & Christian Thöni, 2016. "Overconfidence and Career Choice," PLOS ONE, Public Library of Science, vol. 11(1), pages 1-8, January.
    20. Sheridan Titman & Chishen Wei. Wei & Bin Zhao, 2021. "Corporate Actions and the Manipulation of Retail Investors in China: An Analysis of Stock Splits," NBER Working Papers 29212, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:igg:jabe00:v:11:y:2022:i:1:p:1-15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journal Editor (email available below). General contact details of provider: https://www.igi-global.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.