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In Search of Lost Nudges

Author

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  • Guilhem Lecouteux

    (X-DEP-ECO - Département d'Économie de l'École Polytechnique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris)

Abstract

This paper discusses the validity of nudges to tackle time-inconsistent behaviours. I show that libertarian paternalism is grounded on a peculiar model of personal identity, and that the argument according to which nudges may improve one's self-assessed well-being can be seriously questioned. I show that time inconsistencies do not necessarily reveal that the decision maker is irrational: they can also be the result of discounting over the degree of psychological connectedness between our successive selves rather than over time (Parfit 1984, Reasons and Persons, Oxford University Press). Time inconsistency can call for paternalism if and only if we accept that an individual is characterised by stable " true " preferences over time-dependent outcomes, and that she is rationally required to make time-consistent choices. This model is descriptively and normatively questionable. I then argue that behavioural findings may still justify paternalistic interventions, but on a non-welfarist basis.

Suggested Citation

  • Guilhem Lecouteux, 2015. "In Search of Lost Nudges," Post-Print halshs-01426493, HAL.
    • Handle: RePEc:hal:journl:halshs-01426493
    DOI: 10.1007/s13164-015-0265-0
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01426493
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    References listed on IDEAS

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    5. B. Douglas Bernheim & Antonio Rangel, 2009. "Beyond Revealed Preference: Choice-Theoretic Foundations for Behavioral Welfare Economics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(1), pages 51-104.
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    7. Sunstein, Cass R, 1998. "Selective Fatalism," The Journal of Legal Studies, University of Chicago Press, vol. 27(2), pages 799-823, June.
    8. Cass R. Sunstein & Richard H. Thaler, 2003. "Libertarian paternalism is not an oxymoron," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 48(Jun).
    9. Samuelson, William & Zeckhauser, Richard, 1988. "Status Quo Bias in Decision Making," Journal of Risk and Uncertainty, Springer, vol. 1(1), pages 7-59, March.
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    Citations

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    Cited by:

    1. Guilhem Lecouteux & Ivan Mitrouchev, 2021. "The "View from Manywhere": Normative Economics with Context-Dependent Preferences," GREDEG Working Papers 2021-19, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    2. Guilhem Lecouteux, 2023. "The Homer economicus narrative: from cognitive psychology to individual public policies," Journal of Economic Methodology, Taylor & Francis Journals, vol. 30(2), pages 176-187, April.
    3. Lauren Larrouy & Guilhem Lecouteux, 2018. "Choosing in a Large World: The Role of Focal Points as a Mindshaping Device," Working Papers halshs-01923244, HAL.
    4. Guilhem Lecouteux, 2015. "PHD THESIS SUMMARY: Reconciling normative and behavioural economics," Post-Print halshs-01427084, HAL.
    5. Guilhem Lecouteux, 2020. "Welfare Economics in Large Worlds: Welfare and Public Policies in an Uncertain Environment," GREDEG Working Papers 2020-08, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    6. Guilhem Lecouteux & Ivan Mitrouchev, 2023. "The view from Manywhere : normative economics with context-dependent preferences," Post-Print hal-04551021, HAL.
    7. Guilhem Lecouteux, 2021. "Who's Afraid of Incoherence? Behavioural Welfare Economics and the Sovereignty of the Neoclassical Consumer," GREDEG Working Papers 2021-01, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    8. Guilhem Lecouteux, 2022. "The Homer economicus narrative: from cognitive psychology to individual public policies," Working Papers hal-03791951, HAL.

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