IDEAS home Printed from https://ideas.repec.org/p/esi/evopap/2013-04.html
   My bibliography  Save this paper

Autonomy-enhancing paternalism

Author

Listed:
  • Martin Binder
  • Leonhard K. Lades

Abstract

Behavioral economics has shown that individuals sometimes make decisions that are not in their best interest. This insight has prompted calls for behaviorally-informed policy interventions popu-larized under the notion of "libertarian paternalism". This type of soft paternalism aims at helping individuals without reducing their freedom of choice. We highlight three problems of libertarian paternalism: the difficulty to detect what is in the best interest of an individual, the focus on freedom of choice at the expense of a focus on autonomy, and the neglect of the dynamic effects of libertarian paternalistic policy interventions. We present a form of soft paternalism called "autonomy-enhancing paternalism" that seeks to constructively remedy these problems. Autonomy-enhancing paternalism suggests using insights from subjective well-being research in order to determine what makes individuals better off. It imposes an additional con-straint on the set of permissible interventions highlighting the importance of autonomy in the sense of the capability to make critically reflected, i.e. autonomous, decisions. Finally, it acknowl-edges that behavioral interventions can change the strength of individual decision making anomalies over time as well as influence individual preference learning. We illustrate the differences between libertarian paternalism and autonomy-enhancing paternalism in a simple formal model in the context of optimal sin nudges.

Suggested Citation

  • Martin Binder & Leonhard K. Lades, 2013. "Autonomy-enhancing paternalism," Papers on Economics and Evolution 2013-04, Philipps University Marburg, Department of Geography.
    • Handle: RePEc:esi:evopap:2013-04
    as

    Download full text from publisher

    File URL: ftp://137.248.191.199/RePEc/esi/discussionpapers/2013-04.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Boyce, Christopher J. & Wood, Alex M., 2011. "Personality and the marginal utility of income: Personality interacts with increases in household income to determine life satisfaction," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1), pages 183-191.
    2. Daniel Kahneman & Peter P. Wakker & Rakesh Sarin, 1997. "Back to Bentham? Explorations of Experienced Utility," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 375-406.
    3. Gregory Besharov, 2004. "Second-Best Considerations in Correcting Cognitive Biases," Southern Economic Journal, John Wiley & Sons, vol. 71(1), pages 12-20, July.
    4. Loewenstein, George, 1996. "Out of Control: Visceral Influences on Behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 65(3), pages 272-292, March.
    5. Bruno Frey & Alois Stutzer, 2010. "Happiness and public choice," Public Choice, Springer, vol. 144(3), pages 557-573, September.
    6. Christopher J. Boyce & Alex M. Wood, 2011. "Personality and the marginal utility of income: Personality interacts with increases in household income to determine life satisfaction," Post-Print halshs-00754542, HAL.
    7. Robert Sugden, 2011. "The behavioural economist and the social planner: to whom should behavioural welfare economics be addressed?," Papers on Economics and Evolution 2011-21, Philipps University Marburg, Department of Geography.
    8. Christine Jolls & Cass R. Sunstein, 2006. "Debiasing through Law," The Journal of Legal Studies, University of Chicago Press, vol. 35(1), pages 199-242, January.
    9. Christian Schubert, 2012. "Pursuing Happiness," Kyklos, Wiley Blackwell, vol. 65(2), pages 245-261, May.
    10. Mozaffar Qizilbash, 2012. "Informed desire and the ambitions of libertarian paternalism," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(4), pages 647-658, April.
    11. Cass R. Sunstein & Lucia A. Reisch, 2013. "Green by Default," Kyklos, Wiley Blackwell, vol. 66(3), pages 398-402, August.
    12. Beshears, John & Choi, James J. & Laibson, David & Madrian, Brigitte C., 2008. "How are preferences revealed?," Journal of Public Economics, Elsevier, vol. 92(8-9), pages 1787-1794, August.
    13. Gregory Besharov, 2004. "Second‐Best Considerations in Correcting Cognitive Biases," Southern Economic Journal, John Wiley & Sons, vol. 71(1), pages 12-20, July.
    14. O'Donoghue, Ted & Rabin, Matthew, 2006. "Optimal sin taxes," Journal of Public Economics, Elsevier, vol. 90(10-11), pages 1825-1849, November.
    15. Lades, Leonhard K., 2012. "Towards an incentive salience model of intertemporal choice," Journal of Economic Psychology, Elsevier, vol. 33(4), pages 833-841.
    16. Krueger, Alan B. & Schkade, David A., 2008. "The reliability of subjective well-being measures," Journal of Public Economics, Elsevier, vol. 92(8-9), pages 1833-1845, August.
    17. Rogers, Todd & Bazerman, Max H., 2008. "Future lock-in: Future implementation increases selection of 'should' choices," Organizational Behavior and Human Decision Processes, Elsevier, vol. 106(1), pages 1-20, May.
    18. Leonardo Becchetti & Alessandra Pelloni & Fiammetta Rossetti, 2008. "Relational Goods, Sociability, and Happiness," Kyklos, Wiley Blackwell, vol. 61(3), pages 343-363, August.
    19. Boyce, Christopher J. & Wood, Alex M., 2011. "Personality and the marginal utility of income: Personality interacts with increases in household income to determine life satisfaction," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1-2), pages 183-191, April.
    20. Martin Binder & Alex Coad, 2010. "Going Beyond Average Joe's Happiness: Using Quantile Regressions to Analyze the Full Subjective Well-Being Distribution," Papers on Economics and Evolution 2010-10, Philipps University Marburg, Department of Geography.
    21. Richard H. Thaler & Cass R. Sunstein, 2023. "Libertarian paternalism," Chapters, in: Cass R. Sunstein & Lucia A. Reisch (ed.), Research Handbook on Nudges and Society, chapter 1, pages 10-16, Edward Elgar Publishing.
    22. Berg, Nathan & Biele, Guido & Gigerenzer, Gerd, 2010. "Does consistency predict accuracy of beliefs?: Economists surveyed about PSA," MPRA Paper 26590, University Library of Munich, Germany.
    23. Berg, Nathan & Eckel, Catherine & Johnson, Cathleen, 2010. "Inconsistency Pays?: Time-inconsistent subjects and EU violators earn more," MPRA Paper 26589, University Library of Munich, Germany.
    24. Schubert, Christian & Cordes, Christian, 2013. "Role models that make you unhappy: light paternalism, social learning, and welfare," Journal of Institutional Economics, Cambridge University Press, vol. 9(2), pages 131-159, June.
    25. Robert Sugden, 2008. "Why incoherent preferences do not justify paternalism," Constitutional Political Economy, Springer, vol. 19(3), pages 226-248, September.
    26. Lades, Leonhard K., 2014. "Impulsive consumption and reflexive thought: Nudging ethical consumer behavior," Journal of Economic Psychology, Elsevier, vol. 41(C), pages 114-128.
    27. Sendhil Mullainathan & Joshua Schwartzstein & William J. Congdon, 2012. "A Reduced-Form Approach to Behavioral Public Finance," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 511-540, July.
    28. Mozaffar Qizilbash, 2011. "Sugden’s critique of Sen’s capability approach and the dangers of libertarian paternalism," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(1), pages 21-42, March.
    29. Mozaffar Qizilbash, 2009. "Well-Being, Preference Formation and the Danger of Paternalism," Papers on Economics and Evolution 2009-18, Philipps University Marburg, Department of Geography.
    30. Heinz Welsch, 2002. "Preferences over Prosperity and Pollution: Environmental Valuation based on Happiness Surveys," Kyklos, Wiley Blackwell, vol. 55(4), pages 473-494, November.
    31. Matthew Rabin, 1998. "Psychology and Economics," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 11-46, March.
    32. Brigitte C. Madrian & Dennis F. Shea, 2001. "The Power of Suggestion: Inertia in 401(k) Participation and Savings Behavior," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(4), pages 1149-1187.
    33. Edward L. Glaeser, 2005. "Paternalism and Psychology," Harvard Institute of Economic Research Working Papers 2097, Harvard - Institute of Economic Research.
    34. Binder, Martin & Coad, Alex, 2011. "From Average Joe's happiness to Miserable Jane and Cheerful John: using quantile regressions to analyze the full subjective well-being distribution," Journal of Economic Behavior & Organization, Elsevier, vol. 79(3), pages 275-290, August.
    35. Beshears, John & Choi, James J. & Laibson, David & Madrian, Brigitte C., 2008. "How are preferences revealed?," Journal of Public Economics, Elsevier, vol. 92(8-9), pages 1787-1794, August.
    36. Edward L. Glaeser, 2005. "Paternalism and Psychology," NBER Working Papers 11789, National Bureau of Economic Research, Inc.
    37. Witt, Ulrich, 1991. "Economics, sociobiology and behavioral psychology on preferences," Journal of Economic Psychology, Elsevier, vol. 12(4), pages 557-573, December.
    38. Christopher J. Boyce & Alex M. Wood, 2011. "Personality and the marginal utility of income: Personality interacts with increases in household income to determine life satisfaction," PSE-Ecole d'économie de Paris (Postprint) halshs-00754542, HAL.
    39. Paul Anand & Alastair Gray, 2009. "Obesity as Market Failure: Could a ‘Deliberative Economy’ Overcome the Problems of Paternalism?," Kyklos, Wiley Blackwell, vol. 62(2), pages 182-190, April.
    40. Cass R. Sunstein & Richard H. Thaler, 2003. "Libertarian paternalism is not an oxymoron," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 48(Jun).
    41. Witt, Ulrich & Binder, Martin, 2013. "Disentangling motivational and experiential aspects of “utility” – A neuroeconomics perspective," Journal of Economic Psychology, Elsevier, vol. 36(C), pages 27-40.
    42. John Conlisk, 1996. "Why Bounded Rationality?," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 669-700, June.
    43. Ted O'Donoghue & Matthew Rabin, 2003. "Studying Optimal Paternalism, Illustrated by a Model of Sin Taxes," American Economic Review, American Economic Association, vol. 93(2), pages 186-191, May.
    44. Dolan, Paul & Peasgood, Tessa & White, Mathew, 2008. "Do we really know what makes us happy A review of the economic literature on the factors associated with subjective well-being," Journal of Economic Psychology, Elsevier, vol. 29(1), pages 94-122, February.
    45. Koszegi, Botond & Rabin, Matthew, 2008. "Choices, situations, and happiness," Journal of Public Economics, Elsevier, vol. 92(8-9), pages 1821-1832, August.
    46. Shiv, Baba & Fedorikhin, Alexander, 1999. "Heart and Mind in Conflict: The Interplay of Affect and Cognition in Consumer Decision Making," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 26(3), pages 278-292, December.
    47. Gharad Bryan & Dean Karlan & Scott Nelson, 2010. "Commitment Devices," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 671-698, September.
    48. Daniel Kahneman, 2003. "Maps of Bounded Rationality: Psychology for Behavioral Economics," American Economic Review, American Economic Association, vol. 93(5), pages 1449-1475, December.
    49. Binder, Martin & Coad, Alex, 2010. "An examination of the dynamics of well-being and life events using vector autoregressions," Journal of Economic Behavior & Organization, Elsevier, vol. 76(2), pages 352-371, November.
    50. Leonhard K. Lades, 2012. "Impulsive Consumption and Reflexive Thought: Nudging Ethical Consumer Behavior," Papers on Economics and Evolution 2012-03, Philipps University Marburg, Department of Geography.
    51. David Laibson, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 443-478.
    52. Bruce Ian Carlin & Simon Gervais & Gustavo Manso, 2013. "Libertarian Paternalism, Information Production, and Financial Decision Making," The Review of Financial Studies, Society for Financial Studies, vol. 26(9), pages 2204-2228.
    53. repec:bla:kyklos:v:55:y:2002:i:4:p:473-94 is not listed on IDEAS
    54. Martin Binder, 2013. "Innovativeness and Subjective Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 111(2), pages 561-578, April.
    55. Martin Binder, 2014. "Should evolutionary economists embrace libertarian paternalism?," Journal of Evolutionary Economics, Springer, vol. 24(3), pages 515-539, July.
    56. Ulrich Witt, 2001. "special issue: Learning to consume - A theory of wants and the growth of demand," Journal of Evolutionary Economics, Springer, vol. 11(1), pages 23-36.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Autonomy-enhancing Paternalism
      by Alessandro Cerboni in Knowledge Team on 2014-05-27 01:06:08
    2. Why Nudge? by Cass Sunstein
      by Leonhard Lades in Economics, Psychology and Policy on 2014-05-02 15:17:00

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martin Binder, 2019. "Soft paternalism and subjective well-being: how happiness research could help the paternalist improve individuals’ well-being," Journal of Evolutionary Economics, Springer, vol. 29(2), pages 539-561, April.
    2. Leonhard K. Lades & Liam Delaney, 2024. "Self-control failures, as judged by themselves," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    3. Elena Kantorowicz‐Reznichenko & Jaroslaw Kantorowicz, 2021. "To follow or not to follow the herd? Transparency and social norm nudges," Kyklos, Wiley Blackwell, vol. 74(3), pages 362-377, August.
    4. Christian Schubert, 2015. "On the ethics of public nudging: Autonomy and Agency," MAGKS Papers on Economics 201533, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. Babutsidze, Zakaria & Chai, Andreas, 2018. "Look at me Saving the Planet! The Imitation of Visible Green Behavior and its Impact on the Climate Value-Action Gap," Ecological Economics, Elsevier, vol. 146(C), pages 290-303.
    6. Jan Schnellenbach, 2016. "A Constitutional Economics Perspective on Soft Paternalism," Kyklos, Wiley Blackwell, vol. 69(1), pages 135-156, February.
    7. L. Lades & F. Nova, 2024. "Ethical Considerations When Using Nudges to Reduce Meat Consumption: an Analysis Through the FORGOOD Ethics Framework," Journal of Consumer Policy, Springer, vol. 47(1), pages 1-19, March.
    8. Joshua Henkel & Georg Schwesinger, 2020. "Establishing Sustainable Consumption - How Future Policies Can Channel Consumer Preferences," Bremen Papers on Economics & Innovation 2007, University of Bremen, Faculty of Business Studies and Economics.
    9. Dirk Nicolas Wagner, 2019. "The Opportunistic Principal," Kyklos, Wiley Blackwell, vol. 72(4), pages 637-657, November.
    10. Pasche, Markus, 2014. "Soft Paternalism and Nudging - Critique of the Behavioral Foundations," MPRA Paper 61140, University Library of Munich, Germany.
    11. Leonhard K. Lades & Wilhelm Hofmann, 2019. "Temptation, self-control, and inter-temporal choice," Journal of Bioeconomics, Springer, vol. 21(1), pages 47-70, April.
    12. Christian Schubert, 2014. "Evolutionary economics and the case for a constitutional libertarian paternalism—a comment on Martin Binder, “should evolutionary economists embrace libertarian paternalism?”," Journal of Evolutionary Economics, Springer, vol. 24(5), pages 1107-1113, November.
    13. Martin Binder, 2014. "A constitutional paradigm is not enough—would sovereign citizens really agree to manipulative nudges?—A reply to Christian Schubert," Journal of Evolutionary Economics, Springer, vol. 24(5), pages 1115-1120, November.
    14. Witt, Ulrich, 2021. "Does sustainability-promoting policy making reduce our welfare?," Ecological Economics, Elsevier, vol. 188(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martin Binder, 2019. "Soft paternalism and subjective well-being: how happiness research could help the paternalist improve individuals’ well-being," Journal of Evolutionary Economics, Springer, vol. 29(2), pages 539-561, April.
    2. Binder, Martin & Lades, Leonhard K, 2014. "Autonomy-enhancing paternalism," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 2015-02, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Martin Binder, 2014. "Should evolutionary economists embrace libertarian paternalism?," Journal of Evolutionary Economics, Springer, vol. 24(3), pages 515-539, July.
    4. Lades, Leonhard K., 2014. "Impulsive consumption and reflexive thought: Nudging ethical consumer behavior," Journal of Economic Psychology, Elsevier, vol. 41(C), pages 114-128.
    5. Schnellenbach, Jan & Schubert, Christian, 2015. "Behavioral political economy: A survey," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 395-417.
    6. Schubert, Christian, 2015. "Opportunity And Preference Learning," Economics and Philosophy, Cambridge University Press, vol. 31(2), pages 275-295, July.
    7. Kirchgässner, Gebhard, 2012. "Sanfter Paternalismus, meritorische Güter, und der normative Individualismus," Economics Working Paper Series 1217, University of St. Gallen, School of Economics and Political Science.
    8. Leonhard K. Lades, 2012. "Impulsive Consumption and Reflexive Thought: Nudging Ethical Consumer Behavior," Papers on Economics and Evolution 2012-03, Philipps University Marburg, Department of Geography.
    9. Marco Fabbri & Michael Faure, 2018. "Toward a “constitution” for behavioral policy-making," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(3), pages 241-270, September.
    10. Schubert, Christian, 2017. "Green nudges: Do they work? Are they ethical?," Ecological Economics, Elsevier, vol. 132(C), pages 329-342.
    11. Christian Schubert, 2013. "Is Novelty Always a Good Thing? Towards an Evolutionary Welfare Economics," Economic Complexity and Evolution, in: Guido Buenstorf & Uwe Cantner & Horst Hanusch & Michael Hutter & Hans-Walter Lorenz & Fritz Rahmeyer (ed.), The Two Sides of Innovation, edition 127, pages 209-242, Springer.
    12. Martin Binder, 2013. "Innovativeness and Subjective Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 111(2), pages 561-578, April.
    13. Gebhard Kirchgässner, 2017. "Soft paternalism, merit goods, and normative individualism," European Journal of Law and Economics, Springer, vol. 43(1), pages 125-152, February.
    14. Leonhard K. Lades & Wilhelm Hofmann, 2019. "Temptation, self-control, and inter-temporal choice," Journal of Bioeconomics, Springer, vol. 21(1), pages 47-70, April.
    15. Jacobs Martin, 2016. "Accounting for Changing Tastes: Approaches to Explaining Unstable Individual Preferences," Review of Economics, De Gruyter, vol. 67(2), pages 121-183, August.
    16. Nathan Berg & Gerd Gigerenzer, 2010. "As-if behavioral economics: neoclassical economics in disguise?," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 18(1), pages 133-166.
    17. Jan Schnellenbach, 2016. "A Constitutional Economics Perspective on Soft Paternalism," Kyklos, Wiley Blackwell, vol. 69(1), pages 135-156, February.
    18. Fredrik Carlsson, 2010. "Design of Stated Preference Surveys: Is There More to Learn from Behavioral Economics?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(2), pages 167-177, June.
    19. Committee, Nobel Prize, 2017. "Richard H. Thaler: Integrating Economics with Psychology," Nobel Prize in Economics documents 2017-1, Nobel Prize Committee.
    20. Floris Heukelom, 2007. "Who are the Behavioral Economists and what do they say?," Tinbergen Institute Discussion Papers 07-020/1, Tinbergen Institute.

    More about this item

    Keywords

    libertarian paternalism; behavioral economics; subjective well-being; autonomy; preference learning; welfare economics;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:esi:evopap:2013-04. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christoph Mengs (email available below). General contact details of provider: https://edirc.repec.org/data/vamarde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.