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Comments on: More on slippery slopes and nudges http://www.tvhe.co.nz/2012/06/12/more-on-slippery-slopes-and-nudges/ The Visible Hand in Economics Fri, 15 Jun 2012 18:55:26 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: David Friedman http://www.tvhe.co.nz/2012/06/12/more-on-slippery-slopes-and-nudges/#comment-38343 Fri, 15 Jun 2012 18:55:26 +0000 http://www.tvhe.co.nz/?p=7043#comment-38343 Note that in my post I gave two examples of policies by an organization, Oberlin College, which claims high moral standards, both of which could have been initially defended as examples of libertarian paternalism. One of them resulted in fraudulently collecting some tens of thousands of dollars and failing, after the error was pointed out, to make any effort to notify the victims and return the money.
I agree that Thaler and Sunstein made interesting points in Nudges, but I think they seriously underestimate the risk that actors will use their arguments to justify policies that do not actually meet their requirements.

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By: Eric Crampton http://www.tvhe.co.nz/2012/06/12/more-on-slippery-slopes-and-nudges/#comment-38271 Mon, 11 Jun 2012 21:44:04 +0000 http://www.tvhe.co.nz/?p=7043#comment-38271 I agree with you that in cases like Kiwisaver, we can’t help but affect outcomes by deciding whether it ought to be opt-in or opt-out and that it’s not a bad idea to try to set the choice so that the fewest people would want to change (weighted by costs of error). 

Do note that I have been teaching the original working paper by Sunstein and Thaler, “Libertarian Paternalism is Not An Oxymoron”, to my grad class since 2004. I love that article. And, within its domain, it’s correct. But the politicos have used the nudge idea that’s come from it as justifying a rather broader range of policies than Sunstein and Thaler may have intended, despite Thaler’s assurances that mission creep would never happen. 

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By: Eric Crampton http://www.tvhe.co.nz/2012/06/12/more-on-slippery-slopes-and-nudges/#comment-38268 Mon, 11 Jun 2012 21:30:00 +0000 http://www.tvhe.co.nz/?p=7043#comment-38268 Do hit the stuff Rizzo and Whitman wrote on paternalism and slopes, linked here:
http://offsettingbehaviour.blogspot.co.nz/2009/11/whitman-and-rizzo-on-paternalism.html 

And, the Cato Unbound discussions between Thaler, Whitman and Klick.
http://www.cato-unbound.org/2010/04/05/glen-whitman/the-rise-of-the-new-paternalism/  

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