One big insight that Behavioural Economics has provided us is that we have 2 minds
- Sub Conscious Mind (Auto Pilot) Pre Language Era Mind - Energy efficient. Quick to take decision basis past info/experience, beliefs & emotions
- Conscious Mind (Pilot) Post Language Era Mind - Energy Guzzler. Slow to take decision basis logic.
So all innovations, strategy, new discoveries, critical decisions about career or investment choices requires application of Conscious Mind (Pilot). But remember, it's energy guzzler and limited bandwidth.
Let's get a better perspective how smart people and organisations use this knowledge.
- I read an article about #SteveJobs. It is said he had limited set of clothings in his wardrobe because he didn't wanted to consume his energy on deciding what to wear to work.
- Best employees like #Google & #Facebook provides such good office infrastructure and facilities to their employees that takes care of their mental bandwidth consumed for daily personal life decisions like Child's daycare, preparing lunch box to office, commute etc.
Similarly in the life of a poor person, his/her conscious mind (Cognitive ability) bandwidth gets exhausted in daily life decisions like should I buy bus ticket for Rs.10 to reach the local train station 1.5 km away or walk down and save it to eat a Vada Pao?
Hence they are constrained to take decisions that will help them move up the ladder in life because their daily life decisions consume up their Cognitive Ability.
So by application of BE we can make critical decision making easier (energy efficient) for them that will help them make better choices easily. Like simpler & easy to access career councelling / Investment products/Health initiatives etc. Simple and easy to access Govt Social Programs.
