If a Pigovian tax is desirable for some reason, whether to nudge healthier behavior or to raise needed revenue, is there a way to make it more acceptable?
Sometimes a nudge isn't enough.
I recently attended a fascinating talk on the topic of Behavioral Engineering by my friend Shira Abel. Post that talk, I had an opportunity to ask her a few questions on the same topic.
When we ignore the limitations of human rationality and the systematic errors those limitations produce, we end up designing policies that are logical but don't end up working well for the people they're supposed to serve.