The Law and Economics of Behavioral Regulation

Research output: Contribution to journalArticlepeer-review

Abstract

This article examines the law and economics of behavioral regulation ("nudging"), which governments and organizations increasingly use to substitute for and complement traditional instruments. To advance its welfare-based assessment, Section 1 examines alternative nudging definitions and Section 2 considers competing nudges taxonomies. Section 3 describes the benefits of nudges and their regulatory appeal, while Section 4 considers their myriad costs - most notably the private costs they generate for their targets and other market participants. Section 5 then illustrates the assessment of public and private welfare nudges using cost-benefit analysis, cost-effectiveness analysis, and rationality-effects analysis.

Original languageEnglish
Pages (from-to)223-281
Number of pages59
JournalReview of Law and Economics
Volume18
Issue number2
DOIs
StatePublished - 1 Jul 2022
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2022 Walter de Gruyter GmbH, Berlin/Boston.

Keywords

  • bounded rationality
  • cost-benefit analysis
  • cost-effectiveness analysis
  • nudge
  • rationality
  • rationality-effects analysis
  • regulation

ASJC Scopus subject areas

  • Economics, Econometrics and Finance (all)
  • Law

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