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Does Sunstein and Thaler's Theory Have a Broad Scope?

Author

Listed:
  • Akira Inoue

    (Ritsumeikan University)

  • Kazumi Shimizu

    (Waseda University)

  • Yoshiki Wakamatsu

    (Gakushuin University)

  • Daisuke Udagawa

    (Hannan University)

Abstract

Sunstein and Thaler's theory aims to justify libertarian paternalism (LP), a particular version of paternalism which is in favor of policies that nudge people to choose in their own welfare-promoting direction. A normative ground of their theory for LP lies in understanding that human beings are devoid of rational capacities, as has been illuminated by many findings in cognitive psychology and behavioral economics. With this in hand, their theory goes so far as to endorse libertarian benevolence (LB), which is in favor of policies that nudge people to choose in a direction of promoting the welfare of third parties. In this paper, we examine whether this theory is broad enough so that LB can complement LP. To do so, we show the significance in their theory of a necessary (but implicitly presumed) condition for the LP- and LB-relevant cases, the condition of convergence. Since this condition is not easily met, the LP-relevant cases and especially the LB-relevant cases are much more limited than Sunstein and Thaler presume; the case of organ donation they regard as a typical LB-relevant case is exceptional. This seems a serious problem with Sunstein and Thaler's theory, since it is meant to have a broad scope in such a way that nudges can reasonably be applied to some LB cases.

Suggested Citation

  • Akira Inoue & Kazumi Shimizu & Yoshiki Wakamatsu & Daisuke Udagawa, 2015. "Does Sunstein and Thaler's Theory Have a Broad Scope?," Working Papers 1508, Waseda University, Faculty of Political Science and Economics.
    • Handle: RePEc:wap:wpaper:1508
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    References listed on IDEAS

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    1. 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.
    2. Robert Sugden, 2008. "Why incoherent preferences do not justify paternalism," Constitutional Political Economy, Springer, vol. 19(3), pages 226-248, September.
    3. Cass R. Sunstein & Richard H. Thaler, 2003. "Libertarian paternalism is not an oxymoron," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 48(Jun).
    4. 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.
    5. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
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