Behavioural economics combines concepts from economics and psychology to better understand how people make decisions.
Over the past 50 years, behavioural economics has moved beyond academia and rapidly expanded into the public and private sectors. Based on observation and experimental analysis, behavioural economics is now applied in various ways, ranging from the design and implementation of public policies to the development of goods and services for customers, as well as in uses related to organisational and internal management of companies.
This field is gradually gaining ground in Spain. Frontier Economics has collaborated on a study for BBVA and the Cotec Foundation, aiming to better understand the application of behavioural economics in Spanish organizations and public entities, specifically how it is being used to promote and enhance innovation.
To conduct this work, we undertook desk research, surveys and interviews, seeking to identify successful cases where organisations have found value in its use.
The study's results show that:
- We can find a wide variety of use cases for behavioural economics in Spain, covering internal processes, communications, customer-related processes, and the development of new products and services. Its potential is also significant when combined with artificial intelligence.
- In all organisations where it has been applied, its implementation has yielded positive results. All interviewees have identified the potential and value of this discipline, which addresses problems from a different perspective, complementing the work typically performed.
- There is a lot of interest, but its use is still limited. Behavioural economics is not yet systematically or consciously applied in the majority of organizations, and its use in making communications more effective is more widespread than its application in promoting or supporting innovation.
- Furthermore, its adoption in the public sector is lower than in other countries and could be encouraged through its incorporation into policy design, regulation, and market supervision, although some progress has already been observed in this direction.
Learn more about behavioural economics, its role in innovation, and its use in Spain through the following links:
Download the study here.
Access the report presentation here.
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