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Exploring the (behavioural) political economy of nudging

Published online by Cambridge University Press:  25 January 2017

CHRISTIAN SCHUBERT*
Affiliation:
Friedrich Schiller University Jena, Department of Economics, Carl-Zeiss-Strasse 3, 07743 Jena, Germany
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Abstract

In recent years, a novel, specifically institutional approach to public regulation has become popular, particularly in the Anglo-Saxon world: ‘Libertarian Paternalism’ promises to tackle society's problems in a way that increases welfare without compromising people's freedom and autonomy. The key instrument advanced by this programme is nudges. Although nudges’ ethical quality has been discussed at length, the political economy driving their implementation by self-interested (and possibly boundedly rational) policy makers and bureaucrats has been largely neglected so far. This paper elaborates on how this gap might be filled.

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Type
Research Article
Copyright
Copyright © Millennium Economics Ltd 2017