hide
Free keywords:
paternalism, libertarianism, autonomous decision-making, majoritarian decisions, decision skills, formation of decision capabilities
Abstract:
The study predicts how individual preferences and majoritarian political decisions about the extent of paternalism in a society depend on the distribution of genuine preferences for economic activi-
ties, the distribution of information about these preferences, and the distribution of capabilities for individual decision-making. It explains observed heterogeneity of preferences and suggests that citizens with eccentric tastes and with high decision-making abilities favor a libertarian regime. If decision-making ability is a learnable activity, a feed-back loop emerges between anticipated majority decisions about paternalism and individual investments in citizens own decision-making
abilities, leading to a multiplicity of majoritarian political equilibria.
