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dc.contributor.authorSaint-Paul, Gillesen_US
dc.date.accessioned2009-01-28T16:20:58Z-
dc.date.available2009-01-28T16:20:58Z-
dc.date.issued2002en_US
dc.identifier.urihttp://hdl.handle.net/10419/21277-
dc.description.abstractThis paper analyses the welfare effects of price restrictions on private contracting in a world where agents have a limited cognitive ability. People compute the costs and benefits of entering a transaction with an error. The government knows the distribution of true costs and benefits as well as that of errors. By imposing constraints on transaction prices, the government eliminates some that are on average inefficient--because the price signals that one of the parties has typically grossly overestimated its benefit from participation. This policy may increase aggregate welfare even though some of the transactions being blocked are actually efficient. The paper also studies the extent to which the use of private consultants with sufficient intelligence by people with limited intelligence may dominate government regulation.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesIZA Discussion paper series 609en_US
dc.subject.jelK32en_US
dc.subject.jelK31en_US
dc.subject.jelJ8en_US
dc.subject.jelJ42en_US
dc.subject.jelJ41en_US
dc.subject.jelJ38en_US
dc.subject.jelI3en_US
dc.subject.jelH21en_US
dc.subject.jelD83en_US
dc.subject.jelD82en_US
dc.subject.jelD81en_US
dc.subject.ddc330en_US
dc.subject.keywordcognitive abilityen_US
dc.subject.keywordminimum wagesen_US
dc.subject.keywordregulationen_US
dc.subject.keywordprice controlsen_US
dc.subject.keywordpaternalismen_US
dc.subject.keywordintelligenceen_US
dc.subject.stwPreisaufsichten_US
dc.subject.stwRationales Verhaltenen_US
dc.subject.stwBeschränkte Rationalitäten_US
dc.subject.stwKognitionen_US
dc.subject.stwTheorieen_US
dc.titleCognitive Ability and Paternalismen_US
dc.typeWorking Paperen_US
dc.identifier.ppn361404212en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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