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I think the key difference is whether the distortion is intentional or just incidental. All things being equal, we'd prefer fewer incidental distortions of smal
by repsilat 11y ago
I think the key difference is whether the distortion is intentional or just incidental. All things being equal, we'd prefer fewer incidental distortions of smaller impact.
As for intentional distortions, I think the idea goes that they're all harmful in some way (some more than others) but that the benefit of behavioural change can outweigh the cost. I don't think that would be a terribly controversial statement among economists.