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Choosing for others

Author

Listed:
  • Stephan Marette
  • Jayson L. Lusk
  • F. Bailey Norwood

Abstract

Experiments conducted in the US and France were used to study how individuals make trade-offs between health and taste for themselves and others. When someone receives a choice made for them that differs from their preference, they experience a welfare loss; at least in the short-term. We measure the empirical magnitude of this loss, and suggest it play a role in assessing the desirability of paternalistic policies motivated by behavioural economics. We show that the welfare loss changes with the provision of new information and the impact of this information differs for the two countries.

Suggested Citation

  • Stephan Marette & Jayson L. Lusk & F. Bailey Norwood, 2016. "Choosing for others," Applied Economics, Taylor & Francis Journals, vol. 48(22), pages 2093-2111, May.
  • Handle: RePEc:taf:applec:v:48:y:2016:i:22:p:2093-2111
    DOI: 10.1080/00036846.2015.1114577
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    References listed on IDEAS

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    9. Cass R. Sunstein & Richard H. Thaler, 2003. "Libertarian paternalism is not an oxymoron," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 48(Jun).
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