The American Economic Review | 2021

What Motivates Paternalism? An Experimental Study

 
 
 

Abstract


We study experimentally when, why, and how people intervene in others choices. Choice Architects (CAs) construct opportunity sets containing bundles of time-indexed payments for Choosers. CAs frequently prevent impatient choices despite opportunities to provide advice, believing Choosers benefit. They violate common behavioral welfare criteria by removing impatient options even when all pay-offs are delayed. CAs intervene not by removing options they wish they could resist when choosing for themselves (mistakes-projective paternalism), but rather as if they seek to align others choices with their own aspirations (ideals-projective paternalism). Laboratory choices predict subjects support for actual paternalistic policies.

Volume 111
Pages 787-830
DOI 10.1257/AER.20191039
Language English
Journal The American Economic Review

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