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The Law and Economics of Behavioral Regulation

  • Avishalom Tor EMAIL logo
Veröffentlicht/Copyright: 13. Juli 2022
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Abstract

This article examines the law and economics of behavioral regulation (“nudging”), which governments and organizations increasingly use to substitute for and complement traditional instruments. To advance its welfare-based assessment, Section 1 examines alternative nudging definitions and Section 2 considers competing nudges taxonomies. Section 3 describes the benefits of nudges and their regulatory appeal, while Section 4 considers their myriad costs—most notably the private costs they generate for their targets and other market participants. Section 5 then illustrates the assessment of public and private welfare nudges using cost-benefit analysis, cost-effectiveness analysis, and rationality-effects analysis.

JEL Classification: D61; D90; D91; H40; K29

Corresponding author: Avishalom Tor, University of Notre Dame, Notre Dame, USA, E-mail:

Professor of Law and Director, Notre Dame Research Program on Law Market Behavior (ND LAMB), Notre Dame Law School; Individual Fellow, Israel Institute for Advanced Studies. This project benefited from the generous support of Notre Dame Law School and the Israel Institute for Advanced Studies. Isabella Wilcox provided excellent research assistance.


Award Identifier / Grant number: Individual Fellowship

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Published Online: 2022-07-13

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