ABSTRACT
Chapter 4 is dedicated to the design process of regulatory nudges. In particular, this chapter explains how experimentation requirements have entered the space of regulatory nudging, it defines iterative experimental testing and describes the two dimensions of iteration: trial-and-error and renewal. It also identifies the four experimental alternatives within regulators’ reach and the costs and implications of these approaches. In other words, this chapter analyses the burden and challenges for regulators of bringing iterative experimental testing – a widespread method for nudge design outside regulation – into their own design practices for four experimental alternatives: laboratory experiments, experiments reliant on the cooperation of firms, experimental regulation and legislative and regulatory processes as experimental platforms.
