Behavioral Economics and Securities Regulation

• Project/Area Number: 26380106
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Civil law
• Research Institution: University of Tsukuba
• Principal Investigator: Kimura Makiko 筑波大学, ビジネスサイエンス系, 教授 (40580494)
• Project Period (FY): 2014-04-01 – 2018-03-31
• Project Status: Completed (Fiscal Year 2017)
• Budget Amount: ¥3,640,000 (Direct Cost: ¥2,800,000、Indirect Cost: ¥840,000); Fiscal Year 2017: ¥130,000 (Direct Cost: ¥100,000、Indirect Cost: ¥30,000); Fiscal Year 2016: ¥1,560,000 (Direct Cost: ¥1,200,000、Indirect Cost: ¥360,000); Fiscal Year 2015: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000); Fiscal Year 2014: ¥780,000 (Direct Cost: ¥600,000、Indirect Cost: ¥180,000)
• Keywords: 行動経済学 / 証券規制 / 認知バイアス / 消費者 / 限定合理性 / 適合性原則 / プロダクト・ガバナンス / 投資者保護 / 消費者保護 / プロダクト規制 / ナッジ / 仕組み商品 / 金融教育 / 投資勧誘 / 業規制 / デリバティブ商品

Outline of Final Research Achievements

This study explores the need for reform of Japanese securities regulations by applying insights from behavioral economics to policy design. There is more to be said about such issues are yet to be discussed in Japan.
If one of the aims of securities regulations is to protect investors, regulators should realize the weakness of investors who are susceptible to cognitive biases appeared on investment activities.
By applying insights from behavioral economics to the process of soliciting and selling financial products, retail investors can protect themselves from problematic self-determination which affected by cognitive biases.