Asymmetric paternalism - defined as taking steps to help the least sophisticated people while imposing minimal harm on everyone else.
Benefits Now - Cost Later - Self-control issues are most likely to arise when choices and their consequences are separated in time.
Investment goods - exercise, flossing, dieting. Costs are borne immediately, but benefits are delayed.
Sinful goods - smoking, alcohol. We get pleasure now and suffer consequences later.
Degree of Difficulty - We need help as the problems in front of us become more difficult like picking the right mortgage compared to a loaf of bread.
Frequency - If the frequency with which we face the problems is very low. We face some problems regularly and learn to cope with them through trial and error. Problems for which there are not too many opportunities, may need nudging.
Feedback - Situations and choices that do not provide or are not structured to provide feedback, are good candidates for receiving a nudge.
Knowing what you like - It is hard for people to make good decisions when they have trouble translating the choices they face into the experiences they will have. When people have a hard time predicting how their choices will end up affecting their lives they have less to gain by numerous options. A nudge might help.
[Commentary]
The authors cite an interesting poem "Smart" by "Shel Silverstein". Please read it by searching on google. The authors go on to argue that with all its virtues, the markets may still not be the best place for everything for all people.
In particular, if consumers have a less than fully rational belief, firms often have more incentive to cater to that belief than to eradicate it.
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