Light Paternalism created 2011.02.09 (1)

Light Paternalism created 2011.02.09 (1) - – Decision is...

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Light/Liberitarian/Soft  Paternalism Thaler and Sunstein (2003)
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Paternalism Paternalism: “A policy or practice of treating or  governing people in a fatherly manner, especially by  providing for their needs without giving them rights or  responsibilities.” Paternalistic Policy: “a policy counts as ‘paternalistic’ if  it is selected with the goal of influencing the choices of  affected parties in a way that will make those parties  better off” Why against paternalism? People can make choices that are in their best interest Misconception 1: There are viable alternatives to  paternalism Misconception 2: Paternalism always involves coercion Libertarian Paternalism No coercion
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Unformatted text preview: – Decision is inevitable Are choices rational? • Do people make better choices than third parties could do? – Rational expectations – Forecasts – Heuristics – Preference reversals – Framing – Dynamic inconsistencies (self-control problems) Is paternalism inevitable? Does it always involves coercion? • Selection of default options – Status quo bias • No elimination of other alternatives. How to choose? • Selecting the option that the majority would choose if explicit choices were required and revealed • Selecting the option that would force people to make their choices explicitly • Selecting the option that minimizes opt outs...
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This note was uploaded on 04/15/2011 for the course ECON 73-348 taught by Professor Hafalir during the Spring '11 term at Carnegie Mellon.

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Light Paternalism created 2011.02.09 (1) - – Decision is...

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