Liberalism and Lifestyle: Informing Regulatory Governance with Behavioural Research

Abstract

Behavioural economics is helping illuminate the limits of rational individual choice. At the same time, even as research identifies failures in rationality, policy must inquire about the possibility and legitimacy of government intervention. In ‘Nudging’ Healthy Lifestyles: The UK Experiments with the Behavioural Alternative to Regulation and the Market, Adam Burgess critically describes the introduction of behavioural approaches into UK policy making. In particular, Burgess is concerned with the wholesale adoption of nudge-style programmes to promote healthier living among citizens. Unsurprisingly, the UK developments find equivalent developments in the United States. In January 2009, President Barack Obama suggested that “the principles governing regulation … be revisited.” Envisioning a ‘behavioural dream team’ of economists and psychologists to help lead the way, President Obama appointed Cass Sunstein, the co-author of Nudge, as Administrator of the White House Office of Information and Regulatory Affairs.1 President Obama further ordered the US Office of Management and Budget to “clarify the role of the behavioral sciences in formulating regulatory policy.” The parallels between the countries are striking. The new UK leadership has consulted with Nudge's other co-author, Richard Thaler. The new leadership has guided top administrators to read behavioural research and a “Behavioural Insight Team” has been newly formed within the Prime Minister's Cabinet Office. More operationally, each of the governments has adopted initiatives to nudge citizens to better behaviour, physically and financially.