Spain’s National Commission on Markets and Competition (CNMC) has called on public administrations to make greater use of behavioral economics when designing and supervising regulations. The independent watchdog argues that this approach would lead to more effective public policies, simpler rules, and better functioning markets.
Behavioral economics focuses on how individuals actually make decisions, taking into account factors such as inertia, information overload, and cognitive biases. The CNMC’s recent study highlights that these influences often affect how citizens respond to administrative procedures, use public services, or comply with regulations. Traditional policy design, it warns, frequently overlooks these realities.
The commission points to “nudges” as an example of how small interventions can generate significant results at low cost. Default options in forms, timely reminders, carefully framed messages, or appeals to social norms can all help improve compliance and citizen engagement. By contrast, poorly structured paperwork, overly technical language, and unnecessary bureaucratic hurdles—what experts call “sludge”—create obstacles that reduce the effectiveness of public action. Misused by companies, such tactics can even become harmful “dark patterns” that breach consumer protection rules.
Internationally, many countries have already embraced behavioral economics by creating specialized “nudge units” within government. These teams support the design of smarter policies, evaluate their impact, and share lessons learned. Spain, according to the CNMC, still has ample room to follow this path.
The commission recommends building a stronger institutional framework that brings behavioral insights into every stage of regulation, from drafting new rules to evaluating their results. It also stresses the importance of reducing unnecessary barriers in public administration, encouraging experimentation and testbeds, and promoting transparency and data access. In market supervision, it urges regulators to incorporate behavioral perspectives into compliance strategies and to work more closely with one another.
As the CNMC pointed out, adopting behavioral economics would not only modernize public administration but also ensure that regulation becomes more effective, less burdensome, and more respectful of individual freedom.
