Psychological Bias as a Driver of Financial Regulation

I propose here the psychological attraction theory of financial regulation—that regulation is result biases on part political participants—voters, politicians, bureaucrats, and media commentators; regulatory ideologies that exploit these biases. Some key elements approach are: salience vividness, omission bias, scapegoating xenophobia, fairness reciprocity norms, overconfidence, mood effects. This further emphasizes emergent effects arise from interactions individuals with For example, availability cascades ideological replicators have powerful outcomes.