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Nudge in The Conditions of Digital Transformation: Behavioral Basis

Nudge in The Conditions of Digital Transformation: Behavioral Basis

Journal of Institutional Studies, , Vol. 13 (no. 3),

Digital transformation in most cases has a positive impact on the economy. However, there is a possibility of negative consequences that worsen the standard of life of the population. Society wants to avoid a decline in living standards. The state policy to minimize the risks of digitalization should be developed for these purposes. Digital transformation leads to the complication of the technological environment, to the deformation of social relations, to a change in decision-making processes. The complexity of the technogenic environment leads to increased cognitive distortions and irrational behavior. Living standards are declining as a result. Classical approaches to government regulation often do not take into account psychophysiological and sociocultural behavioral factors. As a result, the regulation does not have the expected effect. This is especially evident in situations of uncertainty and longtime intervals. Behavioral economics and nudge can help solve these problems. This article provides a systematization and description of the factors that determine behavior. Decision-making processes are characterized. A systematization and explanation of cognitive distortions is proposed. An overview of approaches to the use of nudges to prevent cognitive distortions is proposed. Cases of using nudges to reduce the risks of digitalization are presented.

Keywords: digital transformation; economic behavior; needs; cognitive distortion; behavioral economics; neuroeconomics; nudge

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