Regulation for Conservatives: Behavioral Economics and the Case for "Asymmetric Paternalism"

• DOI: 10.2307/3312889
• Publication Date: 2007-02-02T22:33:23Z
• Authors: Colin Camerer; Samuel Issacharoff; George Loewenstein; Ted O'Donoghue; Matthew Rabin
• Keywords: Paternalism

Regulation by the state can take a variety of forms. Some regulations are aimed entirely at redistribution, such as when we tax rich and give to poor. Other seek counteract externalities restricting behavior in way that imposes harm on an individual basis but yields net societal benefits. A good example is taxation fund public goods roads. In situations, would be better off if she alone were exempt from tax; benefits everyone (including herself) must pay tax.