Behavioral Economics, Regulatory Compliance and Performance, And The Compliance Continuum

Abstract

The purpose of this working paper is to apply a more integrated behavioral law and economics and neuroscience lens to the compliance and non-compliance conduct of firms and other regulated entities, and to their incentives, motivation and sense of duty and commitment to comply, not comply, or comply in an incomplete and contingent manner, with laws, regulations and social norms. Applying the behavioral lens is essential, since effective compliance promotion by government authorities, non-state regulators, the compliance units of regulated entities, and other legal, regulatory and market actors requires modifications to the attitudes, preferences, conducts, decision making, and "hearts and minds" of the less ethical, socially responsible, and compliant members of the regulated population.

Keywords: competition policy and law, consumer protection, regulatory compliance and performance, abuses of market power, conventional and digital markets, platforms and ecosystems