AI Snips
Chapters
Transcript
Episode notes
Defining Libertarian Paternalism
- Paternalism means trying to make people better off as judged by themselves. Libertarian means not restricting anyone's freedom to choose.
Cafeteria Arrangement Example
- A cafeteria director must arrange food and that arrangement affects choices. Choosing an arrangement that makes people better off is defensible because a neutral placement doesn't exist.
Default Rules Strongly Affect Savings
- Changing pension-plan defaults from opt-in to automatic enrollment greatly raises participation. Standard economics predicted no effect, but automatic enrollment can raise enrollment by up to 40% or more.