When Do NudgesŽ Increase Welfare?

We use public finance sufficient statistic approaches to characterize the welfare effects of “nudges,” such as simplified information and warning labels, in markets with taxes and endogenous prices. While many studies focus on average effects, we show that welfare also depends on how the nudge affec...

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Bibliographic Details
Published in:The American economic review 2025-05, Vol.115 (5), p.1555-1596
Main Authors: Allcott, Hunt, Cohen, Daniel, Morrison, William, Taubinsky, Dmitry
Format: Article
Language:English
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