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Behavioral Economics For Dummies® by Morris Altman, PhD

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Chapter 5

Exploring the Limits to Free Choice

In This Chapter

arrow Exploring how traditional economists view freedom to choose

arrow Exploring how free choice may reduce your well-being

arrow Uncovering the importance of information and deliberation to choice behavior

arrow Appreciating the role of capabilities in the choices you make

arrow Exploring how weakness of will affects your choices and well-being

arrow Seeing how consumer rights improve your choice environment

Conventional economics says that people engage in free choice based on free will, given the constraints they face. The focus is on income and relative price — the budget constraint. According to conventional economics, as long as people don’t cause harm to others, their free choices and preferences should be respected; this idea is often referred to as consumer sovereignty.

In addition, according to conventional economics, people’s choices reveal what ...

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