IDEAS home Printed from https://ideas.repec.org/p/rnp/wpaper/051714.html
   My bibliography  Save this paper

Behavioral Aspects of the Regulator's Actions
[Поведенческие Аспекты Действий Регулятора]

Author

Listed:
  • Pavlova, Natalia (Павлова, Наталья)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

  • Shastitko, Anastasia (Шаститко, Анастасия)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

Abstract

The findings of many studies in behavioral economics led to a wide dissemination of an opinion that the problem of the effects of limited rationality in the markets can be solved through the proper development of menu of options available to the consumer. The development of such a menu is the obligation of regulators. However, the question arises: to what extent regulators, in turn, are limitedly rational, and are motivated to create optimal methods that ensure the maximum level of welfare, given that their development is costly. This paper systematizes the main forms of limited rationality that can influence the adoption of Decisions by regulators. Based on the analysis, an attempt has been made to answer the two Questions: 1) is there a need and an opportunity to take into account the limited rationality of civil servants in modeling the actions of the regulator and 2) whether development of Special practical measuresis is required for leveling the revealed effects.

Suggested Citation

  • Pavlova, Natalia (Павлова, Наталья) & Shastitko, Anastasia (Шаститко, Анастасия), 2017. "Behavioral Aspects of the Regulator's Actions [Поведенческие Аспекты Действий Регулятора]," Working Papers 051714, Russian Presidential Academy of National Economy and Public Administration.
    • Handle: RePEc:rnp:wpaper:051714
    as

    Download full text from publisher

    File URL: https://repec.ranepa.ru/rnp/wpaper/051714.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kuehnhanss, Colin R. & Heyndels, Bruno & Hilken, Katharina, 2015. "Choice in politics: Equivalency framing in economic policy decisions and the influence of expertise," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 360-374.
    2. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    3. repec:pri:cepsud:125krueger is not listed on IDEAS
    4. Daniel Kahneman & Alan B. Krueger & David Schkade & Norbert Schwarz & Arthur A. Stone, 2006. "Would You Be Happier If You Were Richer? A Focusing Illusion," Working Papers 77, Princeton University, Department of Economics, Center for Economic Policy Studies..
    5. Robert D. Tollison, 1985. "Public Choice and Antitrust," Cato Journal, Cato Journal, Cato Institute, vol. 4(3), pages 905-931, Winter.
    6. Schnellenbach, Jan, 2012. "Nudges and norms: On the political economy of soft paternalism," European Journal of Political Economy, Elsevier, vol. 28(2), pages 266-277.
    7. Schnellenbach, Jan & Schubert, Christian, 2015. "Behavioral political economy: A survey," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 395-417.
    8. Patt, Anthony & Zeckhauser, Richard, 2000. "Action Bias and Environmental Decisions," Journal of Risk and Uncertainty, Springer, vol. 21(1), pages 45-72, July.
    9. Glaeser, Edward L., 2006. "Paternalism and Psychology," Working Paper Series rwp06-006, Harvard University, John F. Kennedy School of Government.
    10. James Cooper & William Kovacic, 2012. "Behavioral economics: implications for regulatory behavior," Journal of Regulatory Economics, Springer, vol. 41(1), pages 41-58, February.
    11. Daniel Kahneman & Alan B. Krueger & David Schkade & Norbert Schwarz & Arthur A. Stone, 2006. "Would You Be Happier If You Were Richer? A Focusing Illusion," Working Papers 77, Princeton University, Department of Economics, Center for Economic Policy Studies..
    12. Tasic Slavisa, 2011. "Are Regulators Rational?," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 17(1), pages 1-21, April.
    13. James Cooper & William Kovacic, 2012. "Erratum to: Behavioral economics: implications for regulatory behavior," Journal of Regulatory Economics, Springer, vol. 41(2), pages 292-292, April.
    14. Slovic, Paul & Finucane, Melissa & Peters, Ellen & MacGregor, Donald G., 2002. "Rational actors or rational fools: implications of the affect heuristic for behavioral economics," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(4), pages 329-342.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schnellenbach, Jan & Schubert, Christian, 2015. "Behavioral political economy: A survey," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 395-417.
    2. Francesc Trillas Jané, 2016. "Behavioral Regulatory Agencies," Working Papers wpdea1606, Department of Applied Economics at Universitat Autonoma of Barcelona.
    3. Schnellenbach, Jan & Schubert, Christian, 2014. "Behavioral public choice: A survey," Freiburg Discussion Papers on Constitutional Economics 14/03, Walter Eucken Institut e.V..
    4. Susan E. Dudley & Zhoudan Xie, 2022. "Nudging the nudger: Toward a choice architecture for regulators," Regulation & Governance, John Wiley & Sons, vol. 16(1), pages 261-273, January.
    5. Shastitko, Anastasia (Шаститко, Анастасия), 2018. "Application of the Conclusions of the Behavioral Economy to the Behavior of Civil Servants: Methodological Aspects [Применение Выводов Поведенческой Экономики К Поведению Государственных Служащих: ," Working Papers 031823, Russian Presidential Academy of National Economy and Public Administration.
    6. Jan Schnellenbach, 2016. "A Constitutional Economics Perspective on Soft Paternalism," Kyklos, Wiley Blackwell, vol. 69(1), pages 135-156, February.
    7. Kuehnhanss, Colin R. & Heyndels, Bruno & Hilken, Katharina, 2015. "Choice in politics: Equivalency framing in economic policy decisions and the influence of expertise," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 360-374.
    8. Sturm, Silke, 2019. "Political Competition: How to Measure Party Strategy in Direct Voter Communication using Social Media Data?," Hamburg Discussion Papers in International Economics 1, University of Hamburg, Department of Economics.
    9. Schubert, Christian, 2017. "Green nudges: Do they work? Are they ethical?," Ecological Economics, Elsevier, vol. 132(C), pages 329-342.
    10. Christian Schubert, 2015. "On the ethics of public nudging: Autonomy and Agency," MAGKS Papers on Economics 201533, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    11. Michael David Thomas, 2019. "Reapplying behavioral symmetry: public choice and choice architecture," Public Choice, Springer, vol. 180(1), pages 11-25, July.
    12. Tasic Slavisa, 2011. "Are Regulators Rational?," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 17(1), pages 1-21, April.
    13. Wei Pan & Yi-Shin Chen, 2018. "Network approach for decision making under risk—How do we choose among probabilistic options with the same expected value?," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-19, April.
    14. Blanchflower, David G. & Oswald, Andrew J., 2008. "Is well-being U-shaped over the life cycle?," Social Science & Medicine, Elsevier, vol. 66(8), pages 1733-1749, April.
    15. Tessa Melkonian & Guillaume Soenen & Maureen Ambrose, 2016. "Will I Cooperate? The Moderating Role of Informational Distance on Justice Reasoning," Journal of Business Ethics, Springer, vol. 137(4), pages 663-675, September.
    16. Thi Truong An Hoang & Andreas Knabe, 2021. "Time Use, Unemployment, and Well-Being: An Empirical Analysis Using British Time-Use Data," Journal of Happiness Studies, Springer, vol. 22(6), pages 2525-2548, August.
    17. Naomi Friedman-Sokuler & Claudia Senik, 2022. "Time-Use and Subjective Well-Being: Is there a Preference for Activity Diversity?," PSE Working Papers halshs-03828272, HAL.
    18. Arnaud Mertens & Philippe Van Kerm, 2023. "Commuting time and absenteeism: Evidence from a natural experiment," LISER Working Paper Series 2023-08, Luxembourg Institute of Socio-Economic Research (LISER).
    19. Deckers Thomas & Falk Armin & Schildberg-Hörisch Hannah, 2016. "Nominal or Real? The Impact of Regional Price Levels on Satisfaction with Life," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(3), pages 1337-1358, September.
    20. Lalin Anik & Lara B Aknin & Michael I Norton & Elizabeth W Dunn & Jordi Quoidbach, 2013. "Prosocial Bonuses Increase Employee Satisfaction and Team Performance," PLOS ONE, Public Library of Science, vol. 8(9), pages 1-8, September.

    More about this item

    Keywords

    Behavioral economics; cognitive errors; state regulation; incentives of civil servants;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnp:wpaper:051714. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RANEPA maintainer (email available below). General contact details of provider: https://edirc.repec.org/data/aneeeru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.