Nudging, calculation, and utopia

Chris Berg and Sinclair Davidson
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Sinclair Davidson: School of Economics Finance and Marketing, RMIT University, Melbourne, Australia

Journal of Behavioral Economics for Policy, 2017, vol. 1, issue S, 49-52

Abstract: In this paper we provide a critique of behavioural economics or nudging as a basis for practical policy making purposes. While behavioural economics operates as a plausible critique of standard neoclassical economics, it suffers from the same methodological errors inherent within that tradition. Just as socialist planners lacked the information (and incentives) to allocate resources across an entire economy and economists lack the information to optimally correct externalities, so too libertarian paternalists lack the information to second guess consumer preferences and opportunity costs.

Keywords: nudging; information problem; preferences (search for similar items in EconPapers)
Date: 2017
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