Behavioural economics and financial consumer protection

Anne-Francoise Lefevre and Michael Chapman
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Anne-Francoise Lefevre: OECD
Michael Chapman: OECD

No 42, OECD Working Papers on Finance, Insurance and Private Pensions from OECD Publishing

Abstract: The G20/OECD Task Force on Financial Consumer Protection has highlighted that "regulators and supervisors can use the insights gained through behavioural economics research to inform their approach to potential remedies to help consumers". This paper, prepared under the aegis of the G20/OECD Task Force, first provides some historical context for the development of the field of behavioural economics and its increased application to policy. It then looks more specifically at the application of behavioural economics in the area of financial consumer protection. Common biases that individuals demonstrate in the context of making financial decisions are identified, and an overview of how numerous governments are testing and implementing the application of behavioural economics for policies promoting financial consumer protection is provided. The paper concludes by highlighting the opportunity for behavioural economics to help provide cost-efficient ways of making policy more effective at promoting positive outcomes for consumers, and stressing the need to continue an open dialogue with policy makers, regulators and supervisors to exchange experiences and good practices.

Keywords: behevioural economics; financial consumer protection (search for similar items in EconPapers)
JEL-codes: D14 D18 G28 (search for similar items in EconPapers)
Date: 2017-03-15
New Economics Papers: this item is included in nep-cbe and nep-pke
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:oec:dafaad:42-en

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