Behavioural insights (BI) has greatly expanded our understanding of how the psychological, social and cultural factors governing human behaviour affect policy outcomes. Governments increasingly recognise the value of BI: OECD research has mapped over 200 government units, initiatives and partnerships across the world applying BI to public policy. As BI has become more prevalent, countries are using it to address new and more complex policy problems.

Behavioural insights (BI) provides policymakers with a new set of tools for designing and implementing effective public policies. BI complements conventional economic theory with extensive evidence on how humans depart from rational decision-making and misperceive risk. Moreover, BI can offer guidance on tailoring policies to address these deviations, by designing interventions that provide individuals with the contextual information that they are otherwise lacking to make a rational decision. An increasing number of public bodies around the globe have recognised the value of applying BI to public policy.

This chapter provides an overview and key lessons of how behavioural insights (BI) is being used to improve public policy and the new insights gained from the application of BI to complex policy problems in the fields of energy consumption, competition, safety and consumer protection. The chapter concludes with guidance for policymakers to consider when applying BI to public policy.