On the Equilibrium Effects of Nudging∗
نویسنده
چکیده
Consumers’ systematic decision biases make them vulnerable to market exploitation. The doctrine of "libertarian paternalism" maintains that this problem can be mitigated by "soft" interventions (nudges) like disclosure or "default architecture". However, the case for nudging is often made without an explicit model of the boundedly rational choice procedures that lie behind consumer biases. I demonstrate that once such models are incorporated into the analysis, equilibrium market reaction to nudges can reverse their theoretical consequences.
منابع مشابه
Nudging, Shaming and Stigmatising to Improve Population Health; Comment on “Nudging by Shaming, Shaming by Nudging”
Nudges are small, often imperceptible changes to how particular decisions present themselves to individuals that are meant to influence those decisions. In his editorial, ‘Nudging by shaming, shaming by nudging’, Eyal highlights links between nudges and feelings of shame on the part of the ‘chooser’. In this commentary, I suggest two further distinctions between different types of shame-based n...
متن کاملOn the Cost of Shame; Comment on “Nudging by Shaming, Shaming by Nudging”
In his editorial, Nir Eyal argues that a nudge can exploit our propensity to feel shame in order to steer us toward certain choices. We object that shame is a cost and therefore cannot figure in the apparatus of a nudge.
متن کاملRadically Questioning the Principle of the Least Restrictive Alternative: A Reply to Nir Eyal; Comment on “Nudging by Shaming, Shaming by Nudging”
In his insightful editorial, Nir Eyal explores the connections between nudging and shaming. One upshot of his argument is that we should question the principle of the least restrictive alternative in public health and health policy. In this commentary, I maintain that Eyal’s argument undermines only a rather implausible version of the principle of the least restrictive alternative and I sketch ...
متن کاملNudging by Shaming, Shaming by Nudging
In both developing and developed countries, health ministries closely examine use of so-called nudges to promote population health and welfare. Cass Sunstein and Richard Thaler, who developed the concept, define a nudge as “any aspect of the choice architecture that alters people’s behavior in a predictable way without forbidding any options or significantly changing their economic incentives. ...
متن کاملDifferences between downscaling with spectral and grid nudging using WRF
Dynamical downscaling has been extensively used to study regional climate forced by large-scale global climate models. During the downscaling process, however, the simulation of regional climate models (RCMs) tends to drift away from the driving fields. Developing a solution that addresses this issue, by retaining the large scale features (from the large-scale fields) and the small-scale featur...
متن کامل