Using Behavioural Economics to Explain Substance Abuse Among Indian Adolescents

Abstract

Understanding the behavioural factors that influence adolescent risky behaviour including substance abuse in India is critical for government agencies and organisations working to combat the now upsurging problem caused by substance use amongst adolescents. The objective of this study is to find out the behavioural biases that influence risky behaviour, including substance abuse among adolescents in India. An exploratory factor analysis is conducted on the responses of 682 teenage respondents from a close-ended questionnaire administered electronically in five schools in Ahmedabad, Gujarat. The Bandwagon Effect, Hard Easy Effect, Optimism Bias, Sunk Cost Fallacy, Social Norms, Disposition Effect, Illusion of Validity, and Availability Heuristic emerged as the factors most affecting the risky behaviour of adolescents including substance abuse. The findings of this research can be used to develop effective interventions to mitigate the effect of these biases on adolescent substance abuse and other risky behaviours. This study enriches the behavioural economics literature by focusing on teenage substance abuse, filling a critical research gap, and providing valuable insights for public health interventions. It also provides benchmarks for future research and policy-making in behavioural economics.