Evaluating Deliberative Competence: A Simple Method with an Application to Financial Choice

Sandro Ambuehl, B. Douglas Bernheim and Annamaria Lusardi ()
Authors registered in the RePEc Author Service: Sandro Ambühl

No 20618, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We examine methods for evaluating opportunity-neutral interventions designed to improve the quality of decision making in settings where people imperfectly comprehend consequences. In an experiment involving financial education, conventional outcome metrics (financial literacy and directional changes in behavior) imply that two interventions, one with practice and feedback, one without, are equally beneficial even though only the first reduces average bias. We trace these evaluative failures to violations of implicit assumptions. We propose a simple intuitive outcome metric that properly differentiates between the interventions, and that is robustly interpretable as a measure of welfare loss even when consumers suffer from other biases.

JEL-codes: D14 D91 I21 (search for similar items in EconPapers)
Date: 2014-10
New Economics Papers: this item is included in nep-edu
Note: PE
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Citations: View citations in EconPapers (6)

Published as Sandro Ambuehl & B. Douglas Bernheim & Annamaria Lusardi, 2022. "Evaluating Deliberative Competence: A Simple Method with an Application to Financial Choice," American Economic Review, vol 112(11), pages 3584-3626.

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Journal Article: Evaluating Deliberative Competence: A Simple Method with an Application to Financial Choice (2022)
Working Paper: Evaluating Deliberative Competence: A Simple Method with an Application to Financial Choice (2021)
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