What do heuristics have to do with policymaking?

Abstract

In an era where behavioral insights overwhelmingly shape policy interventions, heuristic-based decision-making merits closer consideration. That policy environments are complex is not a new topic, nor is the insight that simple heuristic solutions might work best in some complex situations. I move beyond the more common interpretations of heuristics, defined in terms of cognitive biases, to a research program focused on a systematic study of fast-and-frugal heuristics as effective decision tools. I suggest that this approach to heuristics provides a coherent framework for understanding why and how interventions based on behavioral insights work, which in turn can aid policymakers and their advisors on “What Works”**. I draw on nudge-based policies and Behavioral Insights Team report to illustrate my point.

**What Works is a network of centers that designs and implements interventions based on a mixture of tools for effective policy- making that includes bans, mandates, and incentives in addition to behavioral-based methods –headed since 2013 by David Halpern in the UK. I refer here to both this institution and the literal meaning of the phrase.