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Changing People’s Preferences by the State and the Law

  • Ariel Porat
Published/Copyright: August 23, 2021
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Abstract

In standard economic models, two basic assumptions are made: the first, that actors are rational, and the second, that actors’ preferences are a given and exogenously determined. Behavioral economics — followed by behavioral law and economics — has questioned the first assumption. This Article challenges the second one, arguing that in many instances, social welfare should be enhanced not by maximizing satisfaction of existing preferences but by changing the preferences themselves. The Article identifies seven categories of cases where the traditional objections to intentional preference change by the state and the law lose force and argues that in these cases, such a change warrants serious consideration. It then proposes four different modes of intervention in people’s preferences, varying in intensity, on the one hand, and in the identity of their addressees, on the other, and explains the relative advantages and disadvantages of each form of intervention.


* President and Alain Poher Professor of Law at Tel Aviv University. For their very helpful comments, I thank Ronen Avraham, Oren Bar-Gill, Yitzhak Benbaji, Hanoch Dagan, Yuval Feldman, Talia Fisher, Haim Ganz, Jacob Goldin, Sharon Hannes, David Heyd, Amir Khoury, Roy Kreitner, Tami Kricheli-Katz, Shai Lavi, Daphna Lewinsohn-Zamir, Nira Liberman, Amir Licht, Manisha Padi, Haggai Porat, Eric Posner, Ariel Rubinstein, Uzi Segal, and the participants in workshops at Berkeley Law School, the Interdisciplinary Center in Herzliya and the Tel Aviv University Faculty of Law. My thanks also to Daniel Kopilov and Dana Zuk for their excellent research assistance and to Theoretical Inquiries in Law’s editorial board for insightful comments and suggestions.


Published Online: 2021-08-23
Published in Print: 2021-07-27

© 2021 by Theoretical Inquiries in Law

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