Libertarian Paternalism Is Not an Oxymoron
Richard H. Thaler, Cass R. Sunstein
The American Economic Review · 2003
Abstract
Defends the ethical foundation of nudging. The authors argue that since some choice architecture is completely inevitable (e.g., items must be placed in *some* physical order), it is entirely legitimate and desirable to intentionally design defaults and environments to benefit human welfare.
Methodology
Philosophical and practical analysis of choice-structures in public policy and corporate design, addressing common concerns regarding manipulation, paternalism, and personal autonomy.
Findings
Establishes that neutral designs do not exist; some option must always be placed first or set as the fallback. Designers should therefore prioritize welfare-improving options while strictly preserving the absolute freedom of the individual to opt-out.
Applied nudge
Always guarantee transparency in design. Let users quickly override defaults, view historical choices, and easily understand why options are recommended.
Citation
Thaler, R. H., & Sunstein, C. R. (2003). Libertarian paternalism is not an oxymoron. American Economic Review, 93(2), 175-179.