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Facilitator: Jeroen van der Heijden, The Chair in Regulatory Practice
(Victoria Business School)

The behavioural sciences and behavioural economics indicate that people often make choices that are not in their own best interests, and that they do so in a predictable manner. In other words, humans are ‘predictably irrational’. Regulators around the world have embraced these insights and seen an opportunity to use them to achieve better regulatory outcomes. This unit discusses the evolution of our thinking about ‘rational behaviour’, examples of regulation informed by behavioural insights, evidence of the performance of such regulation, and the epistemic and ethical challenges that come with this approach to regulation. It builds on seminal works from a range of scholars, including Professors Cass Sunstein, Richard Thaler, Daniel Kahneman, and Amos Tversky

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