The Architecture of Complexity: Hierarchic Systems

Abstract

This article examines the growing complexity of the American regulatory state and proposes frameworks for simplifying regulatory design without sacrificing effectiveness. Sunstein draws on his experience as Administrator of the Office of Information and Regulatory Affairs to analyze how regulatory complexity creates compliance costs, reduces transparency, and undermines democratic accountability. The article advocates for greater use of regulatory 'defaults' and 'nudges'—drawing on behavioral economics—to achieve regulatory objectives while minimizing the cognitive burden on regulated entities and the public.

Key Findings

• Regulatory complexity imposes significant hidden costs on businesses and individuals
• Behavioral insights can inform simpler, more effective regulatory design
• Default rules and choice architecture can achieve regulatory objectives at lower cost
• Retrospective review of existing regulations is essential to combating regulatory accumulation

Related Statutes

• Administrative Procedure Act
• Regulatory Flexibility Act
• Paperwork Reduction Act

Related Cases

• Motor Vehicle Mfrs. Ass'n v. State Farm (1983)