ABSTRACT
This chapter discusses the reasons why citizens and government may be interested in having more elements of individual choice in social protection. It examines whether more choice could lead to more efficient results and also discusses the preconditions that individuals need to make informed choices as well as the implications for the role of the state. In the public debate, the different dimensions of individual choice are often not spelled out, leading to confusion and an unnecessary polarization of views along ideological lines. Best practices and guidelines for regulatory reforms have been developed by the Organization for Economic Cooperation and Development for several sectors, such as telecommunications, financial services or electricity. In a system where individual choice is newly allowed, there is both a lack of information and a tendency of companies to offer below-market rates to attract new business; inevitably, rates will have to be adjusted later.
