Behavioural Economics in Consumer Policy
By Hanneke Luth
One of the main questions pertaining to policy interventions in consumer policy nowadays is: What to do with behavioral insights? This book presents a systematic research method for assessing policy questions from an economic and a behavioral economic perspective. Policy makers, practitioners, and academics alike can draw relevant insights from the application of behavioral economics to policy. By focusing upon the issue of standardized consumer contract terms, the research exemplifies how behavioral insights can improve consumer policy. The common core in European legal systems regarding standard terms consumer policies is reviewed, which leads to the conclusion that policy makers should look beyond information disclosure and consumer vigilance. This shift in policy focus constitutes insight that would not have resulted but for the application of behaviural insights to the issue of standard terms in consumer contracts.
Publication Date: 11/15/2010