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The Good, the Bad, and the Ugly: A Unified Approach to Behavioral Welfare Economics1

  • B. Douglas Bernheim
Abstract

This paper discusses the ways in which behavioral economics challenges the premises of conventional welfare economics. It proposes revised premises that survive those challenges and sets forth a welfare framework derived from that foundation. It argues that the proposed framework is practical, in the sense that it lends itself to applications, as well as unifying, in the sense that it subsumes other approaches and illuminates the relationships between them.

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This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
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