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How Hayekian is Sunstein's behavioral economics?

Published online by Cambridge University Press:  27 May 2021

Robert Sugden
Robert Sugden*
Affiliation:
School of Economics, University of East Anglia, Norwich NR4 7TJ, UK
*
E-mail: r.sugden@uea.ac.uk
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Abstract

I comment on Sunstein's paper proposing ‘Hayekian behavioural economics’. In essence, Sunstein is merely renaming a familiar approach to normative economics, initiated in Sunstein and Thaler's seminal 2003 paper. I argue that this approach cannot fairly be described as in the spirit of Hayek's work. Sunstein's approach is based on a ‘constructivist’ conception of rationality that Hayek consistently criticized. Although both Hayek and Sunstein address ‘knowledge problems’, the two problems are fundamentally different. I develop what I claim are truly Hayekian critiques of Sunstein's claim that fuel economy mandates can be more Hayekian than carbon taxes.

Keywords

HayekSunsteinHayekian behavioral economicswelfare economicsdivision of knowledge
Type
Response
Information
Behavioural Public Policy , Volume 7 , Issue 1 , January 2023 , pp. 189 - 198
Copyright
Copyright © The Author(s) 2021. Published by Cambridge University Press

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