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What do heuristics have to do with policymaking?

Author

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  • Shabnam Mousavi

    (Johns Hopkins University and Max Planck Institute for Human Development)

Abstract

In an era where behavioral insights overwhelmingly shape policy interventions, heuristic-based decision-making merits closer consideration. That policy environments are complex is not a new topic, nor is the insight that simple heuristic solutions might work best in some complex situations. I move beyond the more common interpretations of heuristics, defined in terms of cognitive biases, to a research program focused on a systematic study of fast-and-frugal heuristics as effective decision tools. I suggest that this approach to heuristics provides a coherent framework for understanding why and how interventions based on behavioral insights work, which in turn can aid policymakers and their advisors on "What Works"**. I draw on nudge-based policies and Behavioral Insights Team report to illustrate my point. **What Works is a network of centers that designs and implements interventions based on a mixture of tools for effective policymaking that includes bans, mandates, and incentives in addition to behavioral-based methods -headed since 2013 by David Halpern in the UK. I refer here to both this institution and the literal meaning of the phrase.

Suggested Citation

  • Shabnam Mousavi, 2018. "What do heuristics have to do with policymaking?," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 2(1), pages 69-74, March.
  • Handle: RePEc:beh:jbepv1:v:2:y:2018:i:1:p:69-74
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    Citations

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    Cited by:

    1. Lowes, Richard & Woodman, Bridget, 2020. "Disruptive and uncertain: Policy makers’ perceptions on UK heat decarbonisation," Energy Policy, Elsevier, vol. 142(C).
    2. Peter John Robinson & W. J. Wouter Botzen, 2023. "Can we nudge insurance demand by bundling natural disaster risks with other risks?," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 7(2), pages 39-46, December.
    3. Morris Altman, 2019. "Implications of smart decision-making and heuristics for production theory and material welfare," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 18(2), pages 167-179, December.
    4. Kapil Patil & Saradindu Bhaduri, 2020. "‘Zero-error’ versus ‘good-enough’: towards a ‘frugality’ narrative for defence procurement policy," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 19(1), pages 43-59, June.

    More about this item

    Keywords

    heuristics; policy interventions; behavioral insights; complexity;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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