Book Review: Nudge and the Law – A European Perspective

Date01 April 2016
AuthorQi Zhou
DOI10.1177/1023263X1602300212
Published date01 April 2016
Subject MatterBook Review
Book Reviews
23 MJ 2 (2016) 383
Alberto Alemanno a nd Anne-Lise Sibony (eds.), Nudge and the Law – A European
Perspe ctive, Har t Publishing, Oxford 2015, ISBN 978–1849467322, €59.99
Behavioural law and economics studies have o ered many valuable insights into
understanding human cognitive errors and lim itations of traditional regulatory
instruments. S cholars of behavioural law and economics suggest t hat ‘nudging’ is a better
regulatory instrument.  e term, ‘nudge’ is used to refer to as ‘a choice architecture’
that alters people’s behaviour in a predictable way wit hout forbidding any options
or signi cantly chaning their economic incenttives.1 It can both respect individual
autonomy and, at the same time, correct cognitive errors and psychological biases.2
Nevertheless, key questions have still been le without answers. W hat are the features
of nudging as a regulator y technique? What are the adva ntages and disadvantages of
nudging in comparison with other regulatory instru ments? How can nudging be
adopted in a particu lar jurisdiction? Is nudging compatible w ith some non-instrumental
values respected by law? e new book, Nudge and the Law – A European Perspective3
is a collection of essays, which provide the answers to thes e questions from a European
perspective. Given the space ava ilable, my goal is not to provide a comprehensive review
of all the essays i n this book, but to highlight its sal ient features.
e rst i s that this book provides a c ritical eva luation of the e ectiveness of behaviour-
based regulatory i nstruments. Some behavioural law and economics scholars prefer
nudging to tradit ional regulatory instru ments because nudging is less interventionist . It
is based on the idea of so -paterna lism. It can overcome human cognitive errors without
undermining individuals’ autonomy. However, are behaviour-based strategies always
superior to traditional reg ulatory instruments?
Di Port and Rangone’s essay4 focuses on this quest ion.  ey critically evaluate
the e ectiveness of behaviour-based inst ruments. According to them, nudging may
be ine ective and undermine individuals’ autonomy. First, they reconceptua lise the
question.  ey prefer the term ‘cognitive and behav ioural limitations’ to ‘cognitive
errors’, and ‘unresponsive behaviour’ over ‘bounded rationa lity or irrationality’.
Sometimes, i ndividuals behave di erently from regulators’ expectat ions, or they are
unresponsive to traditional regulatory means because their behaviour is in uenced by
cognitive and behavioura l limitations such as heuristics, personal at titudes, or biases.
But it cannot be said that t heir behaviour is irrational. erefore, the goa l of regulatory
intervention should not be set up to overcome bounded-rationality or irrationality,
1 R.  aler and C.R. Sustein, Nu dge Improving Decision s about Health, Wealth and Happin ess (Penguin
Books, 2009), p.6.
2 C.R. Sunstei n and R.  aler, ‘libertaria n Paternalism Is Not an Oxymoron’, 70 Unive rsity of Chicago
Law Review (2003), p.1159.
3 A. Alemanno a nd A.-L. Sibony (eds.), Nudge and the Law A European Pers pective (Hart Publishing,
2015).
4 Ibid., Ch. 2.

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