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The role of behavioural economics and neurofinance in financial consumer protection policy

Author

Listed:
  • Diletta Antenucci

    (Bank of Italy)

  • Francesco Franceschi

    (Bank of Italy)

  • Gioia Repaci

    (Bank of Italy)

Abstract

This paper provides a concise but critical overview of the engagement of financial consumer protection authorities with approaches rooted in behavioural economics and neurofinance. We draw on a wide range of documents published by these authorities in recent years. In Specifically, we describe the goals these institutions expect to achieve by incorporating insights from behavioural economics and neurofinance into their activities, and whether they have been successful in doing so, based on some specific cases of policies actually implemented. We also highlight how and to what extent they have devoted internal resources to research and policy rooted in behavioural economics and neurofinance. Finally, we highlight the main empirical research methods they have used.

Suggested Citation

  • Diletta Antenucci & Francesco Franceschi & Gioia Repaci, 2024. "The role of behavioural economics and neurofinance in financial consumer protection policy," Questioni di Economia e Finanza (Occasional Papers) 890, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_890_24
    as

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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2024-0890/QEF_890_24.pdf
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    References listed on IDEAS

    as
    1. Daniel Kahneman, 2003. "Maps of Bounded Rationality: Psychology for Behavioral Economics," American Economic Review, American Economic Association, vol. 93(5), pages 1449-1475, December.
    2. Sumit Agarwal & Souphala Chomsisengphet & Neale Mahoney & Johannes Stroebel, 2015. "Regulating Consumer Financial Products: Evidence from Credit Cards," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(1), pages 111-164.
    3. Massimiliano Affinito & Ludovica Galotto & Francesco Privitera, 2024. "The case for mindful customer protection: a review and some thoughts on neuroeconomics and neurofinance," Questioni di Economia e Finanza (Occasional Papers) 888, Bank of Italy, Economic Research and International Relations Area.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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