Over the past few decades, the Nudge theory has received wider attention from both
policymakers and researchers. Nudging is one of the strategies from behavioural economics
that aims to influence the behaviour of an individual by changing the environment. Behavioural
economics is the study of psychology as it relates to the economic decision-making process of
individuals and institutions. Behaviour economics is influenced by bounded rationality,
the architecture of choices, cognitive biases, and herd mentality. The paper sheds light on the
importance of the Nudge Theory and its applications in the real world. The paper also aims to explain its applicability with examples in every field. It has further focused on the importance of
Nudging. This paper also provides recommendations related to the implementation of Nudge
Theory at the end of the paper.

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