Richard Thaler on Libertarian Paternalism
EconTalk
00:00
Is There a Better Way to Choose a Life Style Fund?
People are very heterogeneous, so the default that's good for one type of person might not be the ideal default for another. People have a lot more information about their own situation than any corporate manager or government ployee had. That's probably as much insight as 90 % of the participants have about their own preferences. So this is just not a fatal flaw. There's no reason that smart defalts need to worry about that.
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