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Making the Right Moves

Making the Right Moves

Regulators are waking up to the power of behavioural economics to understand markets, assess competition and improve consumer outcomes. Is it a passing fad or will it replace traditional economics? This article argues for a middle way – that behavioural economics is a valuable new arrow in the quiver of a modern telecoms regulator, one that complements and brings out the best from traditional regulatory frameworks.

Behavioural economics is the incorporation of psychological insights into economics – a process that has been underway for a long time. Behavioural insights can complement the traditional economic understanding of markets and add to the telecoms regulator’s toolbox.

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