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Discussion Paper Details

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Title: Information Nudges and Self-Control

Author(s): Thomas Mariotti, Nikolaus Schweizer, Nora Szech and Jonas von Wangenheim

Publication Date: November 2018

Keyword(s): information design, Information Nudges, Present-Biased Preferences and Self-Control

Programme Area(s): Industrial Organization and Public Economics

Abstract: We study the optimal design of information nudges for present-biased consumers who have to make sequential consumption decisions without exact prior knowledge of their long-term consequences. For arbitrary distributions of risk, there exists a consumer-optimal information nudge that is of cutoff type, recommending consumption or abstinence according to the magnitude of the risk. Under a stronger bias for the present, the target group receiving a credible signal to abstain must be tightened. We compare this nudge with those favored by a health authority or a lobbyist. When some consumers are more strongly present-biased than others, a traffic-light nudge is optimal.

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Bibliographic Reference

Mariotti, T, Schweizer, N, Szech, N and von Wangenheim, J. 2018. 'Information Nudges and Self-Control'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13299