Behavioral regulatory agencies

• Francesc Trillas ^[1]
  1. [1] Universitat Autònoma de Barcelona

     Universitat Autònoma de Barcelona

     Barcelona, España

     
• Localización: Working papers (Universitat Autònoma de Barcelona. Departament d'Economia Aplicada), Nº. 6 (Maig 2016), 2016
• Idioma: inglés
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• Resumen

  • This article analyses how the commitment problem in regulation, and the potential for a strategic delegation solution, is affected by the consideration of bounded rationality by agents that participate in the regulatory interaction. Regulators and other agents have endogenous preferences. Non-optimizing behavior, expert biases (and related de-biasing strategies), and a concern for fairness and process also modify the traditional regulatory game. As a result, on the one hand independent regulators are seen as part of a potentially more robust regulatory system, and on the other hand their contribution to this system can be based on a wider range of instruments.