assymetric paternalism :: essays research papers

Regulation for Conservatives Behavioral Economics and the topic for Asymmetric PaternalismTo begin to understand this article we must first furbish up what the authors mean by asymmetric paternalism. According to the Oxford Dictionary, asymmetric is without symmetry or not fractiond equally. The definition of paternalism renders that it is behaving in a paternal think or limiting freedom and responsibility by well-meant regulations. The authors state that the paternal regulations discussed ar those developed on an individual basis. The regulations are knowing so that those that are uneducated in a particular neighborhood are greatly benefited by the regulations, and those whom are already educated, or richly discerning, are not affected by the regulation.To explain asymmetric paternalism, the authors divide people into two groups, those who are fully rational, people with goals, preferences and take away finish based on those that suit their own best interest, and tho se who are boundedly rational. The boundedly rational individuals are those who go wrong to act in their own best interests and fail to use self-control when making choices. The purpose of the article is to help approximate regulations which are paternalistic and obligate the regulations designed so that the set limits and boundaries are the boundedly rational, to help them make choices in their best interest and not make mistakes, at the same time not affecting the rational individuals. The authors focus on four types of policies that demonstrate examples of paternalism, default rules, provision or reframing of tuition, cooling system off period, and the limiting of consumer choices. With defaults, the authors discuss status quo bias. This is the idea that individuals will raise up with the status quo, or the existing rather than change even if the be to change is low. The reasons for this are stated as loss aversion, omission/ way bias, and procrastination. The authors stat e that the status quo bias effects mostly the boundedly rational because for the fully rational the choice of defaults requires very little effort. Examples of the choices of defaults are more fully explained in the examples of insurance rights, and retirement savings. The second example of paternalism is framing and information disclosure. This policy requires businesses to provide seemingly irrelevant additional information. Since the rational individuals have no need for the additional information, they can simply ignore it. At the same time the boundedly rational individual can benefit greatly from the information. In order to illustrate this concept, the authors give an example of the lottery.