The Mostly Neglected Costs of Nudging
This lecture is part of Prof. Schäfer's ring lecture "New Frontiers in Law and Economics".
One important reason for the increasing global popularity of behavioral policy making, also known as “nudging,” is its potential to promote valuable policy goals at costs that are dramatically lower than those of traditional policy instruments. However, though nudges usually entail only low implementation costs for the government, they can impose significant costs on the individuals they target. In such cases, behavioral policies may generate lower net benefits than the alternatives of traditional interventions or no intervention at all, as Prof. Dr. Avishalom Tor, University of Haifa, will explain in his lecture.Back