Section_8 - Econ 119: Psychology and Economics Section 8...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Econ 119: Psychology and Economics Section 8 TOPIC III: Behavioral Economics and Public Policy March 17, 2010 1 Big Picture Huge potential role of Behavioral Economics in designing consumer policies: models acknowl- edge agents can fail to maximize their welfare. One big area is the taxation of harmful products which provide immediate pleasure and delayed rewards such as smoking. When consumers are hyperbolic discounters, the optimal sin-tax is much greater than actually taxes. Another good example is savings for retirement. 2 Key Terms My hunch is that you have a good working knowledge of Anticipatory utility and Utility from Beliefs (lectures 15 and 16) if you can explain the following concepts:- Consumer policies- Revenue-Neutral Optimal Tax- Libertarian paternalism- Asymmetric paternalism- Robust paternalism- SMarT Plan 1 3 Discussion: Taxation To Unhealthy Food (FIRST: Read the attached article at http://www.npr.org/templates/story/story.php?storyId=124610428) 1. Under which circumstances would a classical economist (Gary) have financed the experiment?1....
View Full Document

Page1 / 2

Section_8 - Econ 119: Psychology and Economics Section 8...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online