Sorry, you do not have access to this eBook
A subscription is required to access the full text content of this book.
Metrics
Views
167
In This Chapter
-
Behaviorally Informed Regulation, part 1
- Introduction
- I. What we know
- A. Findings
- Inertia and procrastination
- Default rules often have a large effect on social outcomes
- Procrastination can have significant adverse effects
- When people are informed of the benefits or risks of engaging in certain actions, they are far more likely to act in accordance with that information if they are simultaneously provided with clear, explicit information about how to do so (Leventhal, Singer, & Jones, 1965; Nickerson & Rogers, 2010)
- Framing and presentation
- People are influenced by how information is presented or “framed” (Levin, Schneider, & Gaeth, 1998)
- Information that is vivid and salient usually has a larger impact on behavior than information that is statistical and abstract
- People display loss aversion; they may well dislike losses more than they like corresponding gains (Thaler, Kahneman, & Knetsch, 1991; McGraw, Larsen, Kahneman, & Schkade, 2010; Card & Dahl, 2011)
- Social influences
- In multiple domains, individual behavior is greatly influenced by the perceived behavior of other people (Hirshleifer, 1995; Duflo & Saez, 2003)
- In part because of social influences, people are more likely to cooperate with one another, and to contribute to the solution of collective action problems, than standard economic theory predicts (Camerer, 2003)
- Difficulties in assessing probability
- In many domains, people show unrealistic optimism (Jolls, 1998; Sharot, 2011)
- People often use heuristics, or mental shortcuts, when assessing risks (Kahneman & Frederick, 2002)
- People sometimes do not make judgments on the basis of expected value, and they may neglect or disregard the issue of probability, especially when strong emotions are triggered (Loewenstein et al., 2001)
- B. Incentives and choice architecture
- II. Concerns
- Bibliography
Abstract
In recent decades, cognitive psychologists and behavioral economists have been incorporating empirical findings about human behavior into economic models. These findings have transformed our understanding of regulation and its likely consequences. They are also providing instructive lessons about the appropriate design of “nudges”— low-cost, choice-preserving, behaviorally informed approaches to regulatory problems, including disclosure requirements, default rules, and simplification (Thaler & Sunstein, 2008).
Other ways to access this content:
Email to request access
Purchase this book
Related chapters
Search for more...
© Informa UK Limited, an Informa Group Company
Home | About RHO | Collections
| Free trial
| How to buy
| Promotions
| Contact us | Help & FAQs
Librarian resources
| Privacy policy
| Cookies
| Terms & conditions
