Category archives: Economics

Is boost the new nudge?

Is boost the new nudge?

Economics

By José Luis Ferreira

Here, I summarize the discussion on the normative differences between nudges and boosts presented in Sims and Müller, 2019 . Behavioral Economics studies the systematic biases in economic decisions that occur because our cognitive processes are constrained and, thus, context-neutral optimization is impracticable. This area of research started with Tversky and Kahneman (1974) , and […]

Voting sincerely for public facilities location

Voting sincerely for public facilities location

Economics

By José Luis Ferreira

There are two major impossibility theorems in social choice: Arrow’s theorem (1951) : the only system to aggregate individual preferences into social preferences (e.g., a voting mechanism) that satisfies the properties of transitivity, monotonicity and independence of irrelevant alternatives for all possible individual preferences is the dictatorial system. Gibbard–Satterthwaite’ theorem (1973) : any voting system […]

The costs of going green

The costs of going green

EconomicsEnergy

By José Luis Ferreira

A tax on carbon emissions is an efficient way to make firms and consumers internalize the environmental costs due to climate change. However, there are many other aspects to consider in a transition from a fossil-fueled economy to a cleaner one. In a past article we presented the case for subsidies on research to develop […]