Libertarian Paternalism, Path Dependence, and Temporary Law
University of Chicago Law Review, Vol. 81, pp. 291-359 (2014)
University of Chicago Coase-Sandor Institute for Law & Economics Research Paper No. 645
69 Pages Posted: 19 Jun 2013 Last revised: 2 Jan 2016
Date Written: June 13, 2013
Abstract
The recent wave of behavioral economics has led some theorists to advocate the possibility of “libertarian paternalism,” in which regulators designing institutions permit significant individual choice but nonetheless use default rules to “nudge” cognitively biased individuals toward particular salutary choices. In this article, we add the possibility of a different kind of nudge: temporary law. Temporary law is less intrusive than permanent regulation, and is particularly attractive in situations in which we believe that path dependence has produced the status quo. We illustrate the argument with the example of smoking bans, and provide an empirical case study of an actual temporary smoking ban in Champaign, Illinois.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Loss Aversion and Law's Formation
By Eyal Zamir
-
By Eyal Zamir