Abstract
This paper provides a methodological analysis of Libertarian Paternalism, as put forward in the book Nudge by Richard Thaler and Cass Sunstein (Yale University Press, 2008). Libertarian Paternalism aims to use the accumulated findings of behavioural economics in order to assist decision-makers to make better choices. The philosophical debate about this proposal has focused on normative issues with regards to this proposal. This paper analyses Libertarian Paternalism descriptively and points out four methodological conditions for successful Nudges. On that basis, a methodological critique of Libertarian Paternalism is mounted: the success conditions suggest that Nudges might be even harder to implement and to justify than commonly assumed in the philosophical debate.
This is a preview of subscription content, access via your institution.
Notes
One might argue that this can also be characterised as ApRq, yet since there might be greater resistance on part of the agent, this could also result in A?Rq. Hence it seems apt to characterise the Nudge position as one that is marked by conflict.
Indeed, there is a lot of debate about the adequacy of dual process frameworks (for an overview, see the outline of shortcomings in Sahlin et al. (2010:135ff.)).
References
Ainslie, G. (1992). Picoeconomics: the Interaction of Successive Motivational States within the Individual. Cambridge University Press.
Ainslie, G. (2001). Breakdown of Will. Cambridge University Press.
Anderson, J. (2010). Review of Richard Thaler and Cass Sunstein: nudge: improving decisions about health, wealth, and happiness. Economics and Philosophy, 26, 369–376.
Bovens, L. (2008). The ethics of nudge. In T. Grüne-Yanoff & S. O. Hansson (Eds.), Preference change: approaches from philosophy, economics and psychology, 207–219. Theory and decision library A 42. Berlin and New York: Springer.
Grüne-Yanhoff, T. (2012). Old wine in New Casks: libertarian paternalism still violates liberal principles. Social Choice & Welfare, 38(4), 635–645.
Hausman, D. M., & Welch, B. (2010). Debate: to nudge or not to nudge. Journal of Political Philosophy, 18(1), 123–136.
Kahneman, D. (2003). Maps of bounded rationality: psychology for behavioral economics. American Economic Review, 93(5), 1449–1475.
Kahneman, D., & Tversky, A. (1979). Prospect theory: an analysis of decision under risk. Econometrica, 47(2), 263–292.
Loewenstein, G.H., & Haisley, E. (2008). The Economist as therapist: methodological ramifications of ‘light’ paternalism. In A. Caplin and A. Schotter (Eds.) Perspectives on the future of economics: positive and normative foundations, handbook of economic methodologies (pp. 210–245). Oxford University Press.
Reiss, J. (2013). Philosophy of economics: a contemporary introduction. Routledge.
Saghai, Y. (2013). Salvaging the concept of nudge. Journal of Medical Ethics. doi:10.1136/medethics-2012-100727.
Sahlin, N.-E., Wallin, A., & Persson, J. (2010). Decision science: from Ramsey to dual process theories. Synthese, 172(1), 129–143.
Starmer, C. (2000). Developments in non-expected utility theory: the hunt for a descriptive theory of choice under risk. Journal of Economic Literature, XXXVIII, 332–382.
Thaler, R. H., & Sunstein, C. R. (2008). Nudge. London: Yale University Press.
Wilkinson, T. M. (2013). Nudging and manipulation. Political Studies, 61(2), 341–355.
Acknowledgments
Many thanks to Luc Bovens, Foad Dizadji-Bahmani, Michiru Nagatsu, Alice Obrecht, Julian Reiss, Ingrid Robeyns, David Teira, and two anonymous reviewers of European Journal for Philosophy of Science for very helpful comments on previous versions of this article. I also thank audiences at the London School of Economics (LSE) and the Erasmus Institute for Philosophy and Economics (EIPE) at Erasmus University Rotterdam for their feedback.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Heilmann, C. Success conditions for nudges: a methodological critique of libertarian paternalism. Euro Jnl Phil Sci 4, 75–94 (2014). https://doi.org/10.1007/s13194-013-0076-z
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s13194-013-0076-z
Keywords
- Behavioural economics
- Nudge
- Libertarian paternalism
- Dual process