CONTENTS -- FOREWORD -- ACKNOWLEDGEMENTS -- ABOUT THE AUTHORS -- INTRODUCTION COGNITION, CHOICE AND POLICY DESIGN Donald LOW -- Economic Rationalism and Public Policy in Singapore -- What Behavioural Economics says about Cognition and Choice -- Two Objectives -- Caveats and Criticisms -- The Chapters -- References -- PART I -- CHAPTER1 KEY IDEAS IN BEHAVIOURAL ECONOMICS- AND WHAT THEY MEAN FOR POLICY DESIGN KOH Tsin Yen -- Introduction -- The Economic Foundations of Public Policy in Singapore -- Bounded Rationality, Bounded Self-Control, Bounded Self-Interest -- Public Policy Implications and Applications -- Conclusion -- References -- CHAPTER2 INCENTIVES, NORMS AND PUBLIC POLICY Charmaine TAN and Donald LOW -- Introduction -- Social Forces in Markets and the Collective Action Problem -- Social Norms versus Market Incentives -- Getting Incentives and Norms Right -- Conclusion -- References -- PART II -- CHAPTER3 ABEHAVIOURAL PERSPECTIVE TO MANAGING TRAFFIC CONGESTION IN SINGAPORE LEONG Wai Yan and LEW Yii Der -- Introduction -- Area Licensing Scheme (1975): Imposing Road Charges -- Vehicle Quota System (1990): Fairness in Auctions -- Electronic Road Pricing System (1998): From Sunk Costs to Variable Charges -- Refining the ERP System: Making Charges More Salient -- Effecting Shifts to Public Transport: Making Savings More Salient -- Conclusion -- References -- CHAPTER4 CAN PSYCHOLOGY SAVE THE PLANET AND IMPROVE OUR ENVIRONMENT? Philip ONG -- Introduction -- The Standard Economics Approach to the Environment -- The Psychology of Environmentally Sustainable Behaviour -- Image Motivation -- Loss Aversion -- Saliency or Availability Bias -- Mental Accounting -- Discounting -- The Psychology of Unsustainable Consumption -- Conclusion -- References.

CHAPTER5 PROMOTING COMPETITION IN ELECTRICITY RETAIL: INSIGHTS FROM BEHAVIOURAL ECONOMICS Eugene TOH and Vivienne LOW -- Introduction -- Insights from Behavioural Economics -- Providing Information to Overcome the Status Quo Bias -- Factoring Loss Aversion in the Design of Pricing Schemes -- Increasing Energy Efficiency through Saliency and Social Norms -- Singapore's Intelligent Energy System Pilot -- Conclusion -- References -- CHAPTER6 DISCRETIONARY TRANSFERS: PROVIDING FISCAL SUPPORT IN A BEHAVIOURALLY COMPATIBLE WAY Pamela QIU and TAN Li San -- Introduction -- An Overview of the International Experience -- Automatic Stabilisers and Discretionary Transfers in Singapore -- Designing and Implementing the Right Discretionary Transfers -- Behavioural Consideration 1: Correcting for the Lack of Self-Control -- Behavioural Consideration 2: Avoiding a Sense of Entitlement -- Behavioural Consideration 3: Framing Benefits to Support Macroeconomic Objectives -- Behavioural Consideration 4: Mental Accounting -- Conclusions -- References -- Appendix: Discretionary Fiscal Transfers, 1992-2009 -- CHAPTER7 USING BEHAVIOURAL INSIGHTS TO IMPROVE INDIVIDUAL HEALTH DECISIONS Lavinia LOW and YEE Yiling -- Introduction -- Market Failures in Healthcare: The Usual Suspects -- The Consumption of Healthcare -- The Production of Healthcare -- Healthcare Through the Lens of Behavioural Economics -- Healthcare Financing in Singapore -- Medisave -- MediShield, ElderShield and Integrated Shield Plans -- Helping Citizens Make Better Health Choices -- Use of Generics as Default -- Anti-Smoking Measures -- Influencing Food Choices and Combating Obesity -- Increasing Organ Donations Through Defaults -- Communicating Difficult Policy Decisions -- Conclusion -- References -- CHAPTER8 ABEHAVIOURAL VIEW ON DESIGNING SINGAPORE'S NATIONAL ANNUITY SCHEME Donald LOW -- Introduction.

The Need for a National Annuity Scheme -- Addressing Public Concerns and Information Gaps -- Availability Bias -- Framing and Loss Aversion -- Using Defaults -- Simplifying Choices, Increasing Saliency -- Other Considerations -- Conclusion -- References -- CHAPTER9 BEHAVIOURAL ECONOMICS, POLICY ANALYSIS AND THE DESIGN OF REGULATORY REFORM Jack KNETSCH -- Introduction -- Behavioural Findings and Policy Design -- Some Further Findings -- Mental Accounting -- Sunk Cost Effect -- The Power of Free -- Disparity between Gains and Losses -- The Choice of Measure to Value Changes -- Policy and the Creation of Feelings of Entitlement -- The Appeal of Dedicated Funds (Earmarking) -- Fairness and Other-Regarding Behaviour -- Conclusion -- References -- INDEX.