Towards a New Political Economy of Behavioral Public Policy

Abstract

Abstract The dominant normative framework in behavioral public policy postulates paternalistic intervention to increase individual utility, epitomized by the so‐called nudge approach. In this article, an alternative political economy of behavioral public policy is proposed that sits within, or at least closely aside, the liberal economic tradition. In short, rather than impose utility maximization as the normative ideal, this framework proposes that policy makers provide an environment that is conducive to each person's own conception of a flourishing life, while at the same time regulating against behaviorally informed harms and for behaviorally induced, otherwise forgone, benefits .

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