28 - critiques of nudge policy

Question 1

what are the 3 critiques of libertarian paternalist nudge policies

Answer 1

1. practical - does it really work
2. narrowness - to narrow of view
3. fundamental critique - TS claim that there is no viable alternative is flawed

Question 2

Dellavigna & Linos

200 RCT of nudge interventions

Answer 2

• message nudges (not defaults)
• compare treatment and control
• use % difference in compliance between groups as measure of policy effect

Question 3

Dellavigna
results

Answer 3

• academic journals find larger ATE than nudge units
• but do nonetheless find statistically significant effects

Question 4

Jachimovicz

meta analysis

Answer 4

• changes in defaults
  opt in vs opt out
• measures the impact of opt out from opt in on target behaviour

Question 5

Jachimovicz

meta analysis

results

Answer 5

generally positive effects

but heterogeneous
- depends

• different topics have different size of effects

Question 6

what is the too narrow critique

Answer 6

1. too pessimistic a view of human psychology
   - uses failures to nudge behaviour instead of educate and help individual overcome them by themselves
2. too much emphasis on individual level interventions compared to system level interventions

Question 7

what are heuristics

Answer 7

heuristics are mental shortcuts
system 1 thinking = uses heuristics
- people make decisions using fast heuristics that deliver satisfactory decisions

system 2 thinking = more careful and deliberate thinking –> Bayesian updating of probabilities with experience - more careful thinking

Question 8

why is Boost policy approach a better alternative to Nudge policy approach

Answer 8

• Nudge views heuristic thinking as fixed and intervenes to exploit in - choice architecture
• Boost - interevenes with heuristic thinking and tries to expand it - teaching people how to convert probabilities instead of changing choice architecture

Question 9

in what 3 ways does Sugden critique TS

Answer 9

1. claim that there is no viable alternative
2. case for libertarian paternalism
3. BE weakens case for markets

Question 10

what is TS argument for paternalism

Answer 10

paternalist policy is inevitable

there is no other viable option

• every real world choice must have some choice architecture
• better that choice architecture structured to help people

Question 11

what is Sugdens view on

no other viable option TS

Answer 11

the market is a viable alternative - will converge naturally to good outcome

• the market allows individuals to pursue their own interests and make choices that reflect their preferences

Question 12

Sudgens view on libertarian paternalism

Answer 12

critiques that policymakers know better than individuals themselves
- argues against policies that restrict choices due to irrational behaviours

• believes in consumer sovereignty