BEHAVIOURAL ECONOMICS AND PUBLIC POLICIES: SOME INTRODUCTORY ISSUES

In: Facta Universitatis / University of Niš: the scientific journal. Series law and politics, S. 131

Abstract

The paper aims to inform the domestic public about the basic concepts of behavioural economics, its historical development and intellectual basis, the application of its findings in policymaking, and its effectiveness in current practical application. In the first part of the paper, the author presents the basic concepts of behavioural economics: the nudge, the choice architecture, the libertarian paternalism, cognitive biases, and others. The second part of the paper provides a concise overview of the critiques directed at behavioural economics and libertarian paternalism (Posner's critique, Mitchell's critique), and a review of the empirical validity of certain behavioural economics phenomena. The third part presents the use of behavioural findings to inform the design of public policy in different domains (the behavioural public policy), along with numerous examples, mostly from the practice of the Behavioural Insights Team in the United Kingdom.