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Economics of paternalism: the hidden costs of self-commanding strategies (Journal of Philosophical Economics: Reflections on Economic and Social Issues, 9(1), 2015)

The paper proposes an economic assessment of paternalism by comparing different alternative responses to dynamically inconsistent behaviors consecutive to hyperbolic discounting. Two main types of action are possible, self-commanding strategies and paternalism The first category includes personal rules and pre-commitment The second can be subcategorized between coercive and non-coercive forms of paternalism, which are respectively associated (although it is debatable) with legal paternalism and with ‘nudges’. Despite being self-inflicted, self-commanding strategies are actually not cost free and can result in a dramatic cutback of people’s freedom of choice. Likewise, legal paternalism can, on occasion, be less harmful than personal rules or pre-commitment; similarly, nudges can be more invasive and less effective than their proponents want us to believe. The aim of this paper is not to propose any standardized form of response to irrational behavior (whatever that may mean) but to argue, on the contrary, that every case should be individually appraised. Individual situations can be remedied by self-commanding strategies or by paternalistic policies, either in isolation or in combination.

Economics of paternalism: the hidden costs of self-commanding strategies Christophe Salvat To cite this version: Christophe Salvat. Economics of paternalism: the hidden costs of self-commanding strategies. Journal of Philosophical Economics, 2015, IX (1), pp.102-124. <http://www.jpe.ro/?id=b1>. <halshs-01233100> HAL Id: halshs-01233100 https://halshs.archives-ouvertes.fr/halshs-01233100 Submitted on 24 Nov 2015 HAL is a multi-disciplinary open access archive for the deposit and dissemination of scientific research documents, whether they are published or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L’archive ouverte pluridisciplinaire HAL, est destinée au dépôt et à la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d’enseignement et de recherche français ou étrangers, des laboratoires publics ou privés. THE JOURNAL OF PHILOSOPHICAL ECONOMICS: REFLECTIONS ON ECONOMIC AND SOCIAL ISSUES Volume IX Issue 1 Autumn 2015 ISSN 1843-2298 Copyright note: No part of these works may be reproduced in any form without permission from the publisher, except for the quotation of brief passages in criticism. Economics of paternalism: the hidden costs of self-commanding strategies Christophe Salvat     222234322""24# 34$6422""2"45222"643 434"2" #254323"452"2#43643"4$%&4"2 3"424#2'2(364$""2$426"24%2 4"3"2$43 622 262(34"2"%2236 3#2#3"2$4)26#2"&223234526(323452 "24'&432223"45234"26"$4"462#"#2! *+,-./012/.32,0452/+67.258.*+,-.95:8106;<.=063+,0.>0+51.60/?(443"26' 2(364$""2$4223" "3"22632 "4 84272,+@.@:,>2@A.B?.30B3/0;6.?4008B7.B?.@-B+@0<.C+A0*+60D./012/. 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