Does bounded rationality make paternalism more attractive? This Essay argues that errors will be larger when suppliers … comparative statics suggest that bounded rationality will often increase the costs of government decisionmaking relative to …

Does bounded rationality make paternalism more attractive? This Essay argues that errors will be larger when suppliers … comparative statics suggest that bounded rationality will often increase the costs of government decisionmaking relative to …

Prospect theory, loss aversion, mental accounts, hyperbolic discounting, cues, and the endowment effect can all be seen …, laboratory work and, indeed, psychology more generally, gives us little guidance as to market outcomes. Economics provides a …