Question

do you guys have any topic or case can use concepts of behavioral economics to solve real-world problems and shed light on the
underlying psychological mechanisms that are responsible for these problems.

Answer 1

Ans) Behavioural economics deals with human elements subjected to psychological, emotional and socio cultural element affecting the economic decisions .Behavioural economics relies heavily on scientific experiment to determine how people behave in different situations. Behaviour economists could effectively apply to understand the consumer behaviour .For example in Order to gain mouth publicity and increase brand loyalty post purchase activities should be given more importance rather than pre purchase time..In real world application we have to understand Behavioural design which includes the method of providing positive reinforcement to influence behaviour .Hence people have to be motivated and there should be something for which people should be motivated . We can take the example of environment degradation as a real world problem if the people who are doing a great to safeguard our environment and protecting it they should be rewarded in a huge manner as a positive reinforcement that would influence the behaviour of the other in a much better way also recognition is what each and every individual need hence it has a practical application in the real world. The Psychological factors underlying the problem of environment degradation are mainly ,attitude of people ,perception towards othe community ,countries and the negligence behaviour of the people ,ego as well self interest because of these problems the problem of environment pollution which has a huge impact on economy ,society and culture and geography is ignored.