Cass Sunstein on Behavioral Economics and the Inner Homer Simpson
September 8th, 2008
Mulder: Mr. Simpson, we want you to recreate your every move the night you saw the alien.
Homer: The evening began at the gentlemen’s club, where we were discussing Wittgenstein over a game of backgammon.
Scully: Mr. Simpson, it’s a felony to lie to the FBI.
Homer: We were sitting in Barney’s car eating packets of mustard. Happy?The Simpsons, “The Springfield Files” (1997)
Good morning, readers!
Via Bookforum.com: a podcast of an interview of Cass Sunstein by Christopher Lydon on behavioral economics. Here’s the overview:
Cass Sunstein gives us the half-hour short course here on “the most exciting intellectual movement of the last thirty years” — behavioral economics, that is, of which we had a taste recently with George Lakoff and Dan Ariely.
Behavioral economics is the demonstration (by clinical psychology, affirmed by neuroscience) that the “rational man” of neo-classical economics is in fact, in Dan Ariely’s book title, Predictably Irrational — that we are eternally kidding ourselves in our choice of credit cards, or of diets and desserts; that we tend to lurch without much reflection from over-optimism to over-anxiety about terrorist threats, war risks, and environmental melt-downs. Cass Sunstein is himself a demonstration of the spread of the new thinking from psychology and economics to law and politics. From the University of Chicago Law School, where he taught alongside Barack Obama for a dozen years, he has just moved permanently to Harvard, where he and Obama seem still to be channeling each other. Sunstein’s new book Nudge, with the economist Richard Thaler, is an introduction to a variety of not-quite-coercive strategies for helping people get what they really want: 401k savings plans, for example, that would be automatic for all workers who didn’t choose to set some of their wages aside. The general trick, Sunstein says, is recognizing that there’s less Immanuel Kant, more Homer Simpson, in each and all us than we’ve been taught.
Thoughts on this? I know that there has been some criticism of “neuro-[insert discipline of choice]” and related studies, and one of the comments to the podcast description is along these lines.
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