Effects of behavioral economics on public policy

This paper examines how behavioral economics influences public policy implementation through a comprehensive review of open-access academic and public materials. It investigates the effectiveness of policies that consider non-rational factors in human behavior, including cognitive biases, emotions, social norms, and habits. It emphasizes the need for policymakers to incorporate behavioral economics principles through training, expert guidance, pilot programs, impact studies, incentives, specialized units, and continuous evaluation. The paper proposes strategies for understanding behavioral psychology, designing incentive systems, creating environments that facilitate sound decision-making, and promoting awareness about the irrational factors that influence human conduct.