Für wirtschaftliche Freiheit und Steuerwettbewerb

IREF unterstützen

Menu


Für wirtschaftliche Freiheit und Steuerwettbewerb


de.irefeurope.org

Startseite > Diskussionsbeiträge > Working Paper Series > Behavioral biases: how markets can outperform paternalism

Behavioral biases: how markets can outperform paternalism

Montag 9. November 2020, von IREF

Decisions in laboratory experiments often reveal departures from the rational decision maker framework. These findings have been employed to legitimize a paternalistic approach for the government calling for policies that protect citizens from their own behavioral biases. This paper argues against such an approach.

First, we review experimental evidence showing that, if they are given the chance, subjects delegate some complicated decisions to other agents. Second, we develop a framework in which individuals who suffer from a behavioral bias may delegate some decisions to other individuals who have the ability/technology to help them solving this bias. We show that introducing a market for solutions to behavioral biases reduces the likelihood of biased behavior.

Finally, we explore more standard government remedies (i.e., taxes) and show that market solutions can dominate such government interventions.

IREF Working Paper No. 202007: David Stadelmann & Gustavo Torrens
https://de.irefeurope.org/Diskussionsbeitrage/Working-Paper-Series/article/Behavioral-biases-how-markets-can-outperform-paternalism

Eine Nachricht, ein Kommentar?

Vorgeschaltete Moderation

Dieses Forum ist moderiert. Ihr Beitrag erscheint erst nach Freischaltung durch einen Administrator der Website.

Wer sind Sie?
Ihr Beitrag

Um einen Absatz einzufügen, lassen Sie einfach eine Zeile frei.

Abonniere unseren Newsletter