A new field of research called ‘behavioural economics’ has emerged, which studies the way in which people deviate from rationality and simple self-interest. This paper investigates the implications of behavioural economics for public policy in New Zealand.

This research paper was prepared by Timothy Irwin, with assistance from Richard Tooth, Sally Wyatt, Glenn Boyle, Simon Kemp and Graham Scott. It was funded by a grant from the New Zealand Law Foundation.