Abstract
Kahneman and Tversky's 'Prospect Theory' paper famously demolishes expected utility theory as a predictive device. However, it presents deviations from that theory as 'normatively unacceptable' and argues that decision-makers would normally correct them when possible. In a later paper, Kahneman rejects a similar argument (the 'discovered preference' hypothesis) advanced by Plott. Later still, Kahneman endorses Sunstein and Thaler's 'libertarian paternalism', which aims to help people avoid deviating from their 'true' preferences. I report an email correspondence between Kahneman and me in which we debated whether his position on libertarian paternalism was consistent with his critique of Plott's hypothesis.
Original language | English |
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Number of pages | 8 |
Journal | Behavioural Public Policy |
Early online date | 2 Oct 2024 |
DOIs | |
Publication status | E-pub ahead of print - 2 Oct 2024 |
Keywords
- Kahneman
- true self
- true preference
- discovered preference