Libertarian Paternalism

What is Libertarian Paternalism? 

Libertarian paternalism is a behavioral science concept that promotes influencing people's choices for their own benefit while preserving freedom of choice. Popularized by economists Richard Thaler and Cass Sunstein, it uses subtle "nudges" to steer decisions without restricting options. This approach balances individual autonomy with evidence-based policy, making it a powerful tool in health, finance, and public policy. Critics argue it can be manipulative or paternalistic, raising ethical concerns about autonomy and transparency.

The Basic Idea

You just moved into a new apartment. It’s clean and cool, and the smart thermostat is pre-set to an energy-efficient temperature. It’s a bit lower than you usually set it, but it’s actually pretty comfortable (and it’s fun to bundle up and be cozy), so you never end up changing it. Months later, you realize your energy bill is lower, and your carbon footprint is too. You weren’t forced to conserve energy. You could’ve cranked up the heat, but the default setting nudged you to do the right thing—for yourself and the planet.

That’s libertarian paternalism in action, a policy approach that seeks to influence individuals’ behavior in ways that will improve their lives, as judged by themselves, while preserving their freedom to choose. It might seem strange to imagine how those two words could ever coexist, but they do. The concept weaves together economics, psychology, and public policy, and the ethics of its implementation are widely debated. It uses insights from behavioral economics, such as cognitive biases and decision-making heuristics, to design nudges that steer people toward better outcomes without restricting any options or imposing mandates. It's about designing a world where the healthy, smart choices are the easiest ones, but never the only ones, to make.

“Libertarian paternalism is... a relatively weak, soft, and nonintrusive type of paternalism because choices are not blocked, fenced off, or significantly burdened."


— Richard Thaler, behavioral economist and co-author of Nudge

About the Author

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Annika Steele

Annika completed her Masters at the London School of Economics in an interdisciplinary program combining behavioral science, behavioral economics, social psychology, and sustainability. Professionally, she’s applied data-driven insights in project management, consulting, data analytics, and policy proposal. Passionate about the power of psychology to influence an array of social systems, her research has looked at reproductive health, animal welfare, and perfectionism in female distance runners.

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