Study on behavioural economics for efficient regulation and supervision

Behavioural economics has great potential to enhance the effectiveness and efficiency of regulations, public policies, and supervision, thereby benefiting the proper functioning of markets, consumers, and the economy. These instruments are flexible, respect freedom of choice, and are very low-cost. Therefore, many countries use these instruments systematically. To promote their use in Spain, the CNMC recommends creating a regulatory framework on the subject, including behavioural units, networks of experts, human capital, and integration into international forums. Second, adopting behavioural economics in the design and evaluation of regulations and public policies, promoting guidance documents, transparency, experimentation, and a sandbox. Third, introducing a behavioural approach into the work of supervisors, also promoting prevention and awarenessraising measures, and fostering collaboration between institutions.