Using Behavioural Insights to Improve Regulation

Transcription

1 Using Behavioural Insights to Improve Regulation

2 Behavioural Insight When new regulatory proposals are reviewed policy makers will be asked questions including: Does the proposed approach harness the insights of behavioural economics in order to achieve outcomes in minimally burdensome ways? 29

3 Behavioural Insights Team Social Purpose Company (Jointly owned by UK Government, Nesta and Employees - making public services more cost effective and easier for citizens to use; - improving outcomes by introducing a more realistic model of human behaviour to policy; and - enable people to make better choices for themselves.

4 What is a Behavioural Insight?

5 Or Even!

6 One explanation as to why a traditional regulatory approach has not provided a complete solution is because it is underpinned by the belief that consumers act in a perfectly rational way when this is clearly not the case Behavioural Insights Team

7 EAST Model EASY ATTRACTIVE TIMELY SOCIAL

8 EASY Make it Easy How do you make it easier for someone to do something! Harness the power of defaults

9 Opting In Example - Pensions UK Since October 2012

10 EASY Make it Easy How do you make it easier for someone to do something! Harness the power of defaults Reduce the hassle factor in taking up a service

11 Reducing Friction Costs - Tax % Response rate to letters directing people to webpage vs form

12 EASY Make it Easy How do you make it easier for someone to do something! Harness the power of defaults Reduce the hassle factor in taking up a service Simplify Messages

13 Present key message early Simplifying Messages Keep language simple Be specific about recommended actions - break down into simple steps Provide a single point of contact for responses Remove all unnecessary information

14 ATTRACTIVE Make it Attractive Attract attention

15 Attracting the Attention of Owners of Untaxed Vehicles DVLA relicensing rates

16 Personalisation % Response rates of doctors to HMRC letters

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18 ATTRACTIVE Make it Attractive Attract attention Design rewards and sanctions for maximum effect

19 SOCIAL Make it Social Show that most people perform the desired behaviours One means we use to determine what is correct is to find out what other people think is correct - Cialdini

20 Social Proof

21 Social Proof Figure 4.2 Daily Fluctuations in Number of Accident Fatalities before, on, and after Suicide Story Date USA

22 SOCIAL Make it Social Show that most people perform the desired behaviours Use the power of networks Encourage people to make a commitment to others.

23 Commitment If I can get you to make a commitment, I will have set the stage for your automatic and ill considered consistency with that earlier commitment - Robert B Cialdini

24 TIMELY Make it Timely Prompt people when they are most likely to be receptive Consider immediate costs and benefits Help people plan their response to events.

25 Developing the Use of Behavioural Insights Define the outcome Understand the context Build the intervention Test, learn and adapt

26 Testing Back to Work Intervention - Example Only

27 Pitfalls Use financial incentives carefully Don t re-inforce negative social norms Behaviour is not the same as intentions, beliefs and attitudes Don t make assumptions that something will work - test!

28 Too often policies and processes run against the grain of human nature and the result is interventions that are both ineffective and inefficient UK Citizens Advice 2016

29 Regulators Should Think About Applying Behavioural Insights At All Stages At the analysis stage e.g. when assessing market failure When designing remedies When communicating with stakeholders When enforcing; and When evaluating. 29

30 How could you use Behavioural Insights in designing, implementing or enforcing regulation?