Behaviourally-informed regulation and consumer-driven innovation in digital markets

Nikita Divissenko (European University Institute)

Abstract

(The paper is a draft thesis chapter)

The paper focuses on the way behavioural insights inform regulatory interventions aimed at tackling consumer biases and shaping choice environments where such interventions are necessary to ensure a proper functioning of innovative markets. The paper is structured as follows. The first part discusses the role of the informed choice in the process of innovation and the market features that impact consumer decision-making and choice from the behavioural perspective: availability and quality of information, behavioural biases and producer manipulation. The second part of the paper is dedicated to the analysis of the regulatory instruments applied within the EU behaviourally-informed regulation aimed at shaping consumer decision-making and digital choice environments, and the way the literature on behaviourally-informed regulation frames the use of behavioural insights in regulation. The third part delves into the debate over the implementation of behavioural insights in policy-making, and discuss the potential limits for the use of behavioural insights in regulating innovative markets. The final section concludes.