top of page
Duke Law and Economics Society.
​Fifth Annual Triangle Law and Economics Conference​.
Christian Broadbent.
Chief Counsel, SEC.
The SEC recognizes the effect of biases and heuristics within finance. Overconfidence and loss aversion are very common. In response, the SEC preaches disclosure and education. To step into "prudential" regulations, however, would require a wholesale change in approach. Although there is an ongoing dialogue about this, this change is not likely to happen.
2. Is the education of the consumer emphasized as a solution to these behavioral problems?
1. Do regulators acknowledge the role of behavioral economics in finance?
3. Given the inefficacy of education, are regulators willing to implement better behavioral techniques?
4. Are regulators addressing the problem of ratings agencies being paid by those they regulate?
bottom of page