Abstract: Behavioural Economics studies the psychological aspects of human behaviour which governs the demand and supply of the commodities in the market. The traditional school of thought completely ignored the possibility of human bias and preference. Prof. Richard H Thaler, explains the same in his “Nudge Theory”, whereby he talks about the econs or the agents, the primary policy makers and the role they play in macro-economic theory. This article aims at explaining aspects Nudge Theory as propounded by Prof. Richard H Thaler. This article takes into consideration his perspective and explains that every individual at all times does not put forth their best rational behaviour when it comes to making individual choices. They are always subjected to limited rationality, bound by consciousness, suffer from lack of self-control and are driven by social preferences.
Keywords: Nudge Theory, Thaler, Behavioural Economics, buying behaviour.
Title: The Nudge Theory and Choice Architects
Author: Professor Mandira Dutta
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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