Conly

Question 1

1. What do people tend to make their decisions on?

Answer 1

Inevitable cognitive biases and errors. (We think we are less likely to suffer bad thing and discount the odds of good things happening, etc.)

Question 2

2. Why are our decisions bad? What do people want from these decisions?

Answer 2

The decisions are evaluated by our own values and preferences (regret). We assume that everyone wants health, to avoid poverty, and to have social respect.

Question 3

3. What should governments do?

Answer 3

Government should act to protect people from their own bad choices. There are three ways to do this:

1. Liberalism - education about facts and biases, has already reached limit of effect.
2. Libertarian Paternalism - nudge people towards better choices, allow too many bad choices
3. Coercive paternalism - forbid bad choices

Question 4

Which way should the government protect from bad choices?

Answer 4

Coercive Paternalism. It is the best option when…
- The goal is consistent with peoples values.
- Makes goals more likely.
- Least costly, most effective.
= We shouldn’t intervene when the decision is important to someone’s identity, or when the journey is just as important as the outcome.