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Missouri Law Review

Choice

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Libertarian Nudges, Gregory Mitchell Jun 2017

Libertarian Nudges, Gregory Mitchell

Missouri Law Review

We can properly call a number of nudges libertarian nudges, but the territory of libertarian nudging is smaller than is often realized. The domain of libertarian nudges is populated by choice-independent nudges, or nudges that only assist the decision process and do not push choosers toward any particular choice. Some choice-dependent nudges pose no great concern from a libertarian perspective for rational choosers so long as there is a low-cost way to avoid the nudger’s favored choice. However, choice-dependent nudges will interfere with the autonomy of irrational choosers, because the opt-out option will be meaningless for this group. Choice-independent nudges …


Utilizing Behavioral Insights (Without Romance): An Inquiry Into The Choice Architecture Of Public Decision-Making, Adam C. Smith Jun 2017

Utilizing Behavioral Insights (Without Romance): An Inquiry Into The Choice Architecture Of Public Decision-Making, Adam C. Smith

Missouri Law Review

Behavioral economics has been employed in a number of policy applications over the last decade. From energy requirements to tax compliance to consumer finance, policymakers are increasingly operating under the assumption that people consistently fail to make rational choices. While the benefit of this policy trend remains an open debate, behavioral economists have long neglected a complementary examination of public decision-makers themselves. Comparison of two public agencies influenced by behavioral economics, the U.S. Consumer Financial Protection Bureau and U.K. Behavioural Insights Team, demonstrates how different institutions create divergent policy outcomes across the two agencies in a way that cannot be …