Review of Behavioral Economics > Vol 5 > Issue 3-4

Paternalism and Entrepreneurship

Robert Sugden, University of East Anglia, UK,
Suggested Citation
Robert Sugden (2018), "Paternalism and Entrepreneurship", Review of Behavioral Economics: Vol. 5: No. 3-4, pp 243-259.

Publication Date: 31 Dec 2018
© 2018 R. Sugden
Behavioral economics,  Economic theory
JEL Codes: D63D90
Paternalism, entrepreneurshiplibertarian paternalismopportunitymutual advantage


Open Access

This is published under the terms of CC-BY.

In this article:
1. What is Paternalism? 
2. Planners and Doers 
3. What Entrepreneurship Does: The Wine Economy 
4. Entrepreneurship and Opportunity 
5. What Entreperneurship Does: Dupuit’s Bridge 
6. Mutual Advantage 


I explore the area of economic life at the border between paternalism and entrepreneurship, with reference to dual-self Planner/ Doer models used in behavioural economics. Using a concept of a ‘continuing person’ as the composition of her Doer selves at all points in time, I argue that competitive markets provide individuals with every opportunity for feasible voluntary exchanges that they collectively want to use. The mechanism that achieves this result is entrepreneurship. Entrepreneurs do not respond to the preferences that people hold as Planners; they try to anticipate the future preferences of Doers.



Review of Behavioral Economics, Volume 5, Issue 3-4 Special issue Paternalism: Articles Overiew
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