This work explores how behavioral economics and nudging could be applied within a libertarian paternalism framework to improve consumer protection. This work also explores the risks of such approach, including the risk of slippery slope and the knowledge problem.
Contents
1. Introduction.
2. Soft Paternalism and Behavioral Economics.
2.1. Behavioral economics and deviations of rationality
2.2. Soft Paternalism
2.2.1. Definition and Origin.
2.2.2. Examples
2.2.3. Extent of intervention
3. Consumer Protection
3.1. Policy guidelines
3.2. Cooling-off periods
3.3. Providing information.
4. Risks and considerations
4.1. Slippery Slope
4.2. Additional Risks.
5. Conclusion
Bibliography
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