Behavioural Decisions and Policy

Patricio Dalton () and Sayantan Ghosal

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

Abstract: We study the public policy implications of a model in which agents do not fully internalize all the conscequences of their actions. Such a model unifies 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 actions. Psychotherapy is one example of a soft-libertarian policy. Moreover, we show that in our behavioral framework, policies that increase the set of opportunities or provide more information to the agent may not longer be individual welfare improving.

Keywords: Behavioral Decisions; Revealed Preferences; Normative Preferences; Paternalism; Soft-Libertarian; Autonomy; Psychotherapy (search for similar items in EconPapers)
Date: 2010
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https://warwick.ac.uk/fac/soc/economics/research/c ... s/37.2010_ghosal.pdf

Related works:
Journal Article: Behavioral Decisions and Policy (2011)
Working Paper: Behavioral decisions and policy (2011)
Working Paper: Behavioral Decisions and Policy (2010)
Working Paper: Behavioral Decisions and Policy (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:cge:wacage:37

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