The Chapter investigates the fundamental question if consumers are really able to make choices that are in line with their subjective usefulness. To answer this question a non-classical persperctive has to be adopted. Behavioral economics indicates that there are several biases that interfere with optimal decision: lack of simplicity; problems in perceptual salience; improper mapping; inadequate disclosure. Due to cognitive limitations and because laws and regulations lack an adequate ergonomic approach, consumers are unable to make appropriate choices. Nudging can be an alternative: regulators willing to create a pro-consumer enviroment can desing rules that favour choices that are considered better for the public. What are the international experiences that can teach something to the italian regulators? What was the effect of Nudge and the behavioral finance revolution on policy making in the western governments in the area of banking and finance? The chapter shed light on the application of the Nudge to credit cards and mortgages, and then to various banking services, trying to give an overview of different attempts and of their criticality, drawing mostly from the rich US experience.
Bank Nudging. Opportunities and Challenges for Nudge Strategies Applied to the Credit System
PIETRONI, Davide;GIULIANI, FELICE;
2015-01-01
Abstract
The Chapter investigates the fundamental question if consumers are really able to make choices that are in line with their subjective usefulness. To answer this question a non-classical persperctive has to be adopted. Behavioral economics indicates that there are several biases that interfere with optimal decision: lack of simplicity; problems in perceptual salience; improper mapping; inadequate disclosure. Due to cognitive limitations and because laws and regulations lack an adequate ergonomic approach, consumers are unable to make appropriate choices. Nudging can be an alternative: regulators willing to create a pro-consumer enviroment can desing rules that favour choices that are considered better for the public. What are the international experiences that can teach something to the italian regulators? What was the effect of Nudge and the behavioral finance revolution on policy making in the western governments in the area of banking and finance? The chapter shed light on the application of the Nudge to credit cards and mortgages, and then to various banking services, trying to give an overview of different attempts and of their criticality, drawing mostly from the rich US experience.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
