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What Motivates Paternalism? An Experimental Study

Sandro Ambuehl, B. Douglas Bernheim, Axel Ockenfels

American Economic Review · 2021 · Volume 111 · Issue 3

DOI: 10.1257/aer.20191039

Abstract

We study experimentally when, why, and how people intervene in others' choices. Choice Architects (CAs) construct opportunity sets containing bundles of time-indexed payments for Choosers. CAs frequently prevent impatient choices despite opportunities to provide advice, believing Choosers benefit. They violate common behavioral welfare criteria by removing impatient options even when all pay-offs are delayed. CAs intervene not by removing options they wish they could resist when choosing for themselves (mistakes-projective paternalism), but rather as if they seek to align others' choices with their own aspirations (ideals-projective paternalism). Laboratory choices predict subjects' support for actual paternalistic policies.

Keywords

Design of Experiments: Laboratory, Group Behavior, Consumer Economics: Empirical Analysis, Intertemporal Household Choice, Life Cycle Models and Saving

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