Libertarian Paternalism Is Not An Oxymoron

Cass R. Sunstein and Richard H. Thaler assert that while the idea of libertarian paternalism might seem to be an oxymoron, it is both possible and legitimate for private and public institutions to affect behavior while also respecting freedom of choice. Often people's preferences are ill-formed, and their choices will inevitably be influenced by default rules, framing effects, and starting points. In these circumstances, a form of paternalism cannot be avoided. Equipped with an understanding of behavioral findings of bounded rationality and bounded self-control, libertarian paternalists should attempt to steer people's choices in welfare-promoting directions without eliminating freedom of choice. Sunstein and Thaler argue that it is also possible to show how a libertarian paternalist might select among the possible options and to assess how much choice to offer. This paper gives examplesfrom many areas, including savings behavior, labor law, and consumer protection.

Constraining the Axion Portal with B -> K l+ l-

We investigate the bounds on axionlike states from flavor-changing neutral current b->s decays, assuming the axion couples to the standard model through mixing with the Higgs sector. Such GeV-scale axions have received renewed attention in connection with observed cosmic ray excesses. We find that existing B->K l+ l- data impose stringent bounds on the axion decay constant in the multi-TeV range, relevant for constraining the "axion portal" model of dark matter. Such bounds also constrain light Higgs scenarios in the next-to-minimal supersymmetric standard model. These bounds can be improved by dedicated searches in B-factory data and at LHCb.Comment: 7 pages, 4 figures; v2: to match version to appear in PR

Reference Distorted Prices

I show that when consumers (mis)perceive prices relative to reference prices, budgets turn out to be soft, prices tend to be lower and the average quality of goods sold decreases. These observations provide explanations for decentralized purchase decisions, for people being happy with a purchase even when they have paid their evaluation, and for why trade might affect high quality local firms 'unfairly'

Defense mechanisms of empathetic players in the spatial ultimatum game

Experiments on the ultimatum game have revealed that humans are remarkably fond of fair play. When asked to share an amount of money, unfair offers are rare and their acceptance rate small. While empathy and spatiality may lead to the evolution of fairness, thus far considered continuous strategies have precluded the observation of solutions that would be driven by pattern formation. Here we introduce a spatial ultimatum game with discrete strategies, and we show that this simple alteration opens the gate to fascinatingly rich dynamical behavior. Besides mixed stationary states, we report the occurrence of traveling waves and cyclic dominance, where one strategy in the cycle can be an alliance of two strategies. The highly webbed phase diagram, entailing continuous and discontinuous phase transitions, reveals hidden complexity in the pursuit of human fair play.Comment: 4 two-column pages, 5 figures; accepted for publication in Physical Review Letter

‘Better off, as judged by themselves’:A reply to Cass Sunstein

This paper is a reply to Sunstein’s comment on my paper ‘Do people really want to be nudged towards healthy lifestyles?’ The central claim of that paper was that, in their book Nudge, Thaler and Sunstein switch between two different interpretations of the ‘better off, as judged by themselves’ criterion, and that consistent use of one or other interpretation would have blunted the persuasive power of the book. In this reply, I defend that claim against Sunstein’s counter-arguments

Algebraic methods for dynamic systems

Algebraic methods for application to dynamic control system

The cost of anchoring on credit-card minimum repayments

About three quarters of credit card accounts attract interest charges. In the US, credit card debt is $951.7 billion of a total of$2,539.7 billion of consumer credit. In the UK, credit card debt is £55.1 billion of £174.4 billion of consumer credit. The 2005 US Bankruptcy Abuse Prevention and Consumer Protection Act and the 2003 UK Treasury Select Committee's report require lenders to collect a minimum payment of at least the interest accrued each month. Thus people are protected from the effects of compounding interest. But including minimum payment information has an unintended negative effect, because minimum payments act as psychological anchors

Galaxy clustering with photometric surveys using PDF redshift information

Photometric surveys produce large-area maps of the galaxy distribution, but with less accurate redshift information than is obtained from spectroscopic methods. Modern photometric redshift (photo-z) algorithms use galaxy magnitudes, or colors, that are obtained through multi-band imaging to produce a probability density function (PDF) for each galaxy in the map. We used simulated data to study the effect of using different photo-z estimators to assign galaxies to redshift bins in order to compare their effects on angular clustering and galaxy bias measurements. We found that if we use the entire PDF, rather than a single-point (mean or mode) estimate, the deviations are less biased, especially when using narrow redshift bins. When the redshift bin widths are $\Delta z=0.1$, the use of the entire PDF reduces the typical measurement bias from 5%, when using single point estimates, to 3%.Comment: Matches the MNRAS published version. 19 pages, 19 Figure