Paternalism and Psychology

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چکیده

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Normative and non-normative concepts: Paternalism and libertarian paternalism

This chapter concerns the normativity of the concepts of paternalism and libertarian paternalism. The first concept is central to evaluation of public health policy, but its meaning is controversial. The second concept is equally controversial and has received much attention recently. It may or may not shape the future evaluation of public health policy. In order to facilitate honest and fruitf...

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Citizens’ desires to assist the poor reflect a mixture of insurance motives, altruism, and paternalism. Consequently, government policies toward the poor have always been a mixture of income supports and regulations of recipient behavior. Unfortunately, there have been very few analyses of the how these distinct motives interact to generate various policies to the poor. In this paper, we develo...

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If one accepts some paternalistic objectives, how should this shape policy? This paper addresses this issue by considering the trade-off that results when agents have superior information regarding their own situation and tastes but a paternalistic principal views agents’ tastes as as being biased. Applications include: savings behavior by hyperbolic discounting consumers, schooling choice by t...

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Psychology Implies Paternalism? Bounded Rationality may Reduce the Rationale to Regulate Risk-Taking

Behavioral economists increasingly argue that violations of rationality axioms provide a new rationale for paternalism—to “de-bias” individuals who exhibit errors, biases and other allegedly pathological psychological regularities associated with Tversky and Kahneman’s (1974) heuristics-and-biases program. The argument is flawed, however, in neglecting to distinguish aggregate from individual r...

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It is well known that when agents are fully rational, compulsory public insurance may make all agents better o¤ in the Rothschild and Stiglitz (1976) model of insurance markets. We …nd that when su¢ ciently many agents underestimate their personal risks, compulsory insurance makes low-risk agents worse o¤. Hence, behavioral biases may weaken some of the well-established rationales for governmen...

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ژورنال

عنوان ژورنال: SSRN Electronic Journal

سال: 2005

ISSN: 1556-5068

DOI: 10.2139/ssrn.860865