Behavioral Decisions and Policy
AbstractWe study the public policy implications of a model in which agents do not fully internalize all the conscequences of their actions. Such a model uni es seemingly disconected models with behavioral agents. We evaluate the scope of paternalistic and libertarian-parternalistic policies in the light of our model, and propose an alternative type of approach, called soft-libertarian, which guides the decision makers in the internalization of all the conscequences of their ac- tions. Psychotherapy is one example of a soft-libertarian policy. Moreover, we show that in our behavioral framework, policies that increase the set of oppor- tunities or provide more information to the agent may not longer be individual welfare improving.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2010-125.
Date of creation: 2010
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Web page: http://center.uvt.nl
Behavioral Decisions; Revealed Preferences; Normative Preferences; Paternalism; Soft-Libertarian; Autonomy; Psychotherapy;
Other versions of this item:
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- D60 - Microeconomics - - Welfare Economics - - - General
- I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
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