Abstract: In this paper we provide a critique of behavioural economics or nudging as a basis for practical policy making purposes. While behavioural economics operates as a plausible critique of standard neoclassical economics, it suffers from the same methodological errors inherent within that tradition. Just as socialist planners lacked the information (and incentives) to allocate resources across an entire economy and economists lack the information to optimally correct externalities, so too libertarian paternalists lack the information to second guess consumer preferences and opportunity costs.
Author(s): Chris Berg, Sinclair Davidson
Journal: Journal of Behavioral Economics for Policy
Vol: 1 Special Issue: Behavioral Policy and its Stakeholders Year: 2017 Pages: 49–52
Available at: Society for the Advancement of Behavioral Economics
Cite: Berg, Chris, and Sinclair Davidson. “Nudging, Calculation, and Utopia.” Journal of Behavioral Economics for Policy, vol. 1, Special Issue, 2017, pp. 49–52.