Evidence-based Consumer Policy
Economic policy without data on GDP would be unthinkable. Equally, consumer policy must rely on sound evidence to set its priorities, make use of adequate instruments and evaluate policies.
ConPolicy supports leaders in establishing a solid evidence base for consumer policy and in utilising its insights for policy development. Our research draws on insights of behavioural economics. Behavioural economics demonstrates that consumers generally do not make conscious and rational decisions, but instead revert to patterns of behaviour. The findings of behavioural economics fundamentally contradicts traditional economic theories that are based on assumptions about rational behaviour and which still have a strong bearing on current consumer policy. The implications for consumer policy are far reaching.
Key questions are:
- Do consumers choose goods that best correspond to their preferences? If not, why? What role does insufficient competition, inadequate or too much information, lack of knowledge, barriers to switching, insufficient default-options or behavioural factors play in consumer decisions?
- What effect does the shift from the provision of welfare services from the state to markets have on different consumer groups such as singles, families, families with children, pensioners, high/ low income households or migrants?
- How can insights from behavioural economics be utilised to support consumers in their everyday decisions?
Selected publications
Thorun, Christian: Consumer policy research - What behavioural economics can learn from consumer policy, ConPolicy Policy Brief, 02/08/2010 (.pdf German version).
Bracker, Joss Florian und Thorun, Christian: Über die Bedeutung der Nachfrageseite für die Effizienz von Märkten - eine Diskussion ökonomischer Theorien, Forum Ware 35, 2007.
Thorun, Christian: Von der Tendenz her berechtigt, in der Höhe nicht immer nachvollziehbar – ein Kommentar zu den Preiserhöhungen bei Lebensmitteln, ifo-Schnelldienst 19, 2007.
Selected presentations
German Federal Ministry of Economics and Technology: Quality assurance in the context of the service directive: How do consumers recognise service quality?
Presentation, 12 December 2007, Berlin
EU Commission: ECCG Competition Working Group, Competition problems consumers are complaining about
Presentation, 25 January 2007, Brussels
German Federal Ministry of Economics and Technology: Hearing on the 8th reform of German Cartel law
Expert Hearing, 27 November 2006, Berlin