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The Choice Architecture of Choice Architecture: Toward a Non-paternalistic Nudge Policy

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  • David Colander

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  • Andrew Qi Lin Chong

Abstract

The paper seeks to recast the goal of nudge policy from a goal of achieving a specific result determined by government or by behavioral economists to a goal of giving individuals as much power as is practical to decide the choice architecture they face. We call a nudge with such a giving individuals “power over choice mechanisms” goal a non-paternalistic nudge policy. The goal of non-paternalistic nudge policy is not to achieve a better result as seen by government or by behavioral economists. The goal of non-paternalistic nudge policy is to achieve a better result as seen by the agents being nudged as revealed through their choices of choice architectures. We argue that non-paternalistic nudge policy fits much better with the values inherent in Classical liberalism than does libertarian paternalistic nudge policy.

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File URL: http://www.middlebury.edu/services/econ/repec/mdl/ancoec/1036.pdf
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Bibliographic Info

Paper provided by Middlebury College, Department of Economics in its series Middlebury College Working Paper Series with number 1036.

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Length: 10 pages
Date of creation: Oct 2010
Date of revision:
Handle: RePEc:mdl:mdlpap:1036

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Related research

Keywords: libertarian; paternalism; nudge policy; choice architecture; behavioral economics;

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References

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  1. John Beshears & James Choi & David Laibson & Brigitte Madrian, 2008. "How are Preferences Revealed?," Yale School of Management Working Papers amz2466, Yale School of Management.
  2. Cass R. Sunstein & Richard H. Thaler, 2003. "Libertarian paternalism is not an oxymoron," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, issue Jun.
  3. James J. Choi & David Laibson & Brigitte C. Madrian & Andrew Metrick, 2003. "Optimal Defaults," American Economic Review, American Economic Association, vol. 93(2), pages 180-185, May.
  4. Richard H. Thaler & Cass R. Sunstein, 2003. "Libertarian Paternalism," American Economic Review, American Economic Association, vol. 93(2), pages 175-179, May.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Nudge nudge, wink wink
    by Kevin Denny in Geary Behaviour Centre on 2009-10-25 09:18:00

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