Article 35A77 Cognitive Biases Afflict Government "Nudgers" Too

Cognitive Biases Afflict Government "Nudgers" Too

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Thaler and many other behavioral economics scholars argue that government should intervene to protect people against their cognitive biases, by various forms of paternalistic policies. In the best-case scenario, government regulators can "nudge" us into correcting our cognitive errors, thereby enhancing our welfare without significantly curtailing freedom. But can we trust government to be less prone to cognitive error than the private-sector consumers whose mistakes we want to correct?

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