Course

Behavioural Economics in Regulated Industries Training Course

A one day course to help professionals in regulated industries understand the power of behavioural economics

10 October 2019

About this Course

Behavioural economics is playing an ever greater role in the strategic thinking of firms and regulators at board room level. It is now expected that organisations take biases and irrational behaviours into account in the product design and marketing process, as well as in their overall strategic planning.

Our expert trainer from Europe Economics will help you understand predictable biases and irrational behaviours, and the effects on consumer decision-making and how they apply to your business so that you can unlock the benefits of appreciating consumer behaviour to make your strategies more effective. Attendees will benefit from detailed explanation of the theory and interactive sessions exploring consumer behaviour and how behavioural economics is used in regulation across the regulated industries, making this course a must attend for teams looking to upgrade their product design and marketing processes with their customers’ preferences in mind.

Key learning objectives

Of This one-day course include

What behavioural economics is and why it has grown in popularity

How they may affect consumer behaviour across regulated industries

The implications of behavioural economics for regulators and policy-makers in the regulated sectors

Key behavioural biases and how they work

How regulated firms may act in the presence of behavioural biases

Enjoyable, informative, interesting, useful

- CC Water

Trainer was very detailed and engaging. The group-based activities were an excellent opportunity to brainstorm

- Central Bank of Ireland

Really good insight into a topic which has given me food for thought for additional research

- Wesleyan Group

Course Trainers

Andrew-Lilico

Dr Andrew Lilico

Director, Europe Economics

Dr Andrew Lilico is a Director of Europe Economics and has led many projects on financial services. He is an expert in behavioural economics, with a PhD in bounded rationality and significant experience applying behavioural economics in subsequent working papers and projects. He is a member of the IEA/Sunday Times Shadow Monetary Policy Committee, and is a frequent commentator on the BBC, Sky, Bloomberg and CNBC.  

Deborah Drury Speaker Photo

Deborah Drury

Senior Consultant, Europe Economics

Deborah Drury is a Senior Consultant at Europe Economics with extensive experience working in the utility and transport sectors (including rail, water, energy, and airports) and in the field of financial services. She has undertaken secondments with the Financial Conduct Authority, the ORR and Ofwat, and has applied behavioural insights to work across a range of sectors such as consumer credit, retail investment and consumer valuations in price-regulated companies.

Attending Companies

Course Agenda

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Training Course Thursday, 10 October 2019

Introduction to the course

09:30

 

  • Objectives of the training course
  • Programme and format for the day

 


Introduction to behavioural economics

09:40
  • Preferences and rationality in mainstream economics
  • What is behavioural economics?
  • Bounded rationality
  • Common misunderstandings
  • Non-standard preferences vs. cognitive limitations
  • How behavioural biases may affect consumers, firms and regulators
  • Why consumers may be prone to biases in financial services markets
  • Analysing behavioural biases
    • Models based on behavioural economics
    • Behavioural experiments

Behavioural biases – non-standard preferences

10:05
  • Time variant preferences / hyperbolic discounting
  • Loss aversion
  • Regret theory
  • Fairness and spite
  • Default bias

10:45

Refreshments

Behavioural biases – cognitive limitations

11:00
  • Information framing effects
  • Myopia / limited foresight
  • Projection bias
  • Biases relating to perceptions of probabilities
  • Choice overload
  • Mental accounting

Interactive break-out session: identifying behavioural biases in consumer behaviour

12:00

In this session, delegates will break into smaller groups to work on an interactive case study involving the interpretation of data on consumer behaviour in financial services markets using insights from behavioural economics.


13:00

Lunch

Implications for consumer, firm and regulator behaviour

14:00
  • How behavioural biases may affect consumer behaviour
    • Choice of financial product
    • Usage behaviour
    • Switching behaviour
    • Claiming redress
  • How firms in the regulated industries may respond to consumer biases
    • Design of pricing structure
    • Design of tariff offers
    • Framing of information
  • Behavioural biases affecting firms’ decision-making
  • Behavioural finance – behavioural biases affecting investors
  • How market forces might sometimes correct for behavioural biases
  • How behavioural biases can affect regulators themselves

Implications of behavioural biases for regulators and policy-makers

14:45
  • Framework for competition in the regulated industries
    • g. avoiding choice overload
    • To what extent is competition in itself a solution?
  • Consumer protection policy in regulated industries
    • Changing how information is presented
    • Cooling off periods
  • Wider public policy in the regulated industries
    • Reflecting behavioural biases in design of policy (e.g. choice of default)
    • The concept of “nudge”
    • Pitfalls: how interventions might make problems worse
    • Taking account of behavioural biases in impact assessment
  • Case study: the Financial Conduct Authority’s approach to behavioural economics

15:45

Refreshments

Interactive break-out session: protecting consumers in regulated industries

16:00

Breaking into small groups, delegates will be given an interactive exercise relating to the design of policy proposals to protect consumers from detriment caused by behavioural biases


Summary and conclusions

17:00
  • Brief summary of what has been learned during day
  • Final opportunity to ask questions

17:15

End of course

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Course include:

All day access to trainers, coursework, lunch and refreshments

Group Discount

15% off

When you buy 3 or more tickets

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£845.00 + VAT

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