Abstract

The article explains how ‘nudge theory’ can be applied to alleviate the incidence of terrorism. Nudges, which bring about a change in the environment in which individual choice is exercised, do not just modify the behaviour of individuals in a society but thereby influence the social environment which impacts both the human brain and behaviour. Thus, a nudge when appropriately administered to a large number of individuals can potentially bring about social evolution. This article seeks to reap dividends from this analytical argument by setting up an axiomatic system which captures present-day individual and social behaviour and then elaborates on the resultant social dynamics, which lead to growth of terrorism inducing intercommunity hatred. As humans can evolve, any axioms about human and social behaviour are not timeless. The article therefore suggests nudges for utilizing the bidirectional causality between the human brain and social environment to render one or more axioms toothless and diminish the societal propensity for terrorism. The recommended nudges include those that promote formation of mixed neighbourhoods by discreetly inducing more frequent interactions of a positive nature between members of hitherto hostile socio-economic groups; cultural exchange on neutral ground; and corporate social responsibility fostering the wellbeing of poor communities. JEL Classification: B55, D74, D87

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