Index Of Paheli [2021] Jun 2026

In many real-world settings—ranging from microfinance contracts to public health guidelines—decision-makers face environments so confusing that they resemble riddles ( paheli ). This paper proposes a novel composite metric, the Index of Paheli (IoP), to quantify the degree to which a choice environment impedes rational decision-making through ambiguity, complexity, and contradictory cues. Drawing on behavioral economics, information theory, and psychometrics, the IoP integrates three sub-indices: (1) Structural Complexity (e.g., number of steps, conditional clauses), (2) Informational Asymmetry (gap in understanding between expert and layperson), and (3) Contradiction Density (frequency of internally inconsistent signals). We derive a mathematical formulation, test it on hypothetical financial products, and discuss policy applications in consumer protection, development interventions, and digital interface design. The IoP offers a practical tool for regulators and researchers to identify and reduce “puzzling” environments that disproportionately harm cognitively burdened populations.

| Index | Focus | Limitation | |-------|-------|-------------| | Flesch-Kincaid | Readability | Ignores logical contradictions | | Lerner Index | Market power | Ignores cognitive aspects | | Shannon Entropy | Information content | Ignores pragmatic meaning | | Cognitive Load Score (CLS) | Working memory load | Ignores informational asymmetry | index of paheli

Compute ( S ): log(13)/log(51) ≈ 2.565/3.932 = 0.652; B/Bmax=3/5=0.6; C/Cmax=6/10=0.6. S = 0.652×0.6×0.6 = 0.235. We derive a mathematical formulation, test it on