Nudges.gov: Behavioral Economics and Regulation
Forthcoming, Oxford Handbook of Behavioral Economics and the Law (Eyal Zamir and Doron Teichman eds.)
46 Pages Posted: 18 Feb 2013 Last revised: 21 Feb 2013
Date Written: February 16, 2013
Behavioral economics is influencing regulatory initiatives in many nations, including the United States and the United Kingdom. The role of behavioral economics is likely to increase in the next generation, especially in light of the growing interest in low-cost, choice-preserving regulatory tools. Choice architecture -- including default rules, simplification, norms, and disclosure -- can affect outcomes even if material incentives are not involved. For example, default rules can have an even larger effect than significant economic incentives. Behavioral economics has helped to inform recent and emerging reforms in areas that include savings, finance, distracted driving, energy, climate change, obesity, education, poverty, health, and the environment.
Keywords: behavioral economics, nudge, regulation, energy efficiency
JEL Classification: D003, D10, D11, D18, D60, D80, K0, K2
Suggested Citation: Suggested Citation