Behavioural insights and regulatory authorities

The rise of behavioural insights has been well-documented. This chapter focuses on economic regulators in Britain to explore in greater detail the initial appeal and (unintended) consequences of a behavioural insights-influenced agenda for regulatory agencies. The chapter suggests that rather than providing ‘low cost’ (and straightforward ‘evidence-based’) solutions to problems, the application of behavioural insights has generated a more sophisticated understanding of the unintended consequences of regulatory interventions and of the varied responses of consumers to regulation. This chapter first considers the contextual background that led to the adoption of behavioural insights across economic regulators, it then explores a number of ‘discoveries’ that emerged in the context of applying behavioural insights to issues in economic regulation and concludes by pointing to the broader implications of the British experience for regulation and to pathways for further research.