Deakin Speaking

In a 2008 paper on neuroeconomics, Carnegie Mellon University economist George Loewenstein said: “Whereas psychologists tend to view humans as fallible and sometime even self-destructive, economists tend to view people as efficient maximisers of self-interest who make mistakes only when imperfectly informed about the consequences of their actions.” 

Despite a clear and substantial increase in the amount and quality of information available to the modern consumer through globalisation, and communication advances, we still don’t always make decisions that are in our best interests, particularly in the areas where politicians and lawyers seem to spend a lot of time, such as financial, telecommunications, and even competition policy. So what can policy makers do to at least create an environment of better consumer outcomes?