Behavioral Political Economy and Democratic Theory: Fortifying Democracy for the Digital Age
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Drawing on current debates at the frontiers of economics, psychology, and political philosophy, this book explores the challenges that arise for liberal democracies from a confrontation between modern technologies and the bounds of human rationality. With the ongoing transition of democracy’s underlying information economy into the digital space, threats of disinformation and runaway political polarization have been gaining prominence. Employing the economic approach informed by behavioral sciences’ findings, the book’s chief concern is how these challenges can be addressed while preserving a commitment to democratic values and maximizing the epistemic benefits of democratic decision-making. The book has two key strands: it provides a systematic argument for building a behaviorally informed theory of democracy; and it examines how scientific knowledge on quirks and bounds of human rationality can inform the design of resilient democratic institutions. Drawing these together, the book explores the centrality of the rationality assumption in the methodological debates surrounding behavioral sciences as exemplified by the dispute between neoclassical and behavioral economics; the role of (ir)rationality in democratic social choice; behaviorally informed paternalism as a response to the challenge of irrationality; and non-paternalistic avenues to increase the resilience of the democratic institutions toward political irrationality. This book is invaluable reading for anyone interested in behavioral economics and sciences, political philosophy, and the future of democracy. Cover Half Title Series Information Title Page Copyright Page Dedication Table of Contents Illustrations Acknowledgments Introduction Overview of the Book’s Structure Bibliography 1 The Paradigmatic Struggle in the Theory of Human Behavior Economic Approach to Human Behavior An Empire of Rational Choice Behavioral Paradigm Shift Toward a New Theory of Human Behavior Predictive Success and “Realism” Neoclassical Predictive Success Behavioral Economics’ Promise Conclusion Notes Bibliography 2 Democracy and Rationality Choice: Individual and Collective The Problem of Social Choice The Problem of Rational Ignorance and the Wisdom of Crowds Condorcet’s Jury Theorem Miracle of Aggregation and Diversity Trumps Ability Theorem Behavioral Political Economy of Democracy A Democratic Equilibrium Conclusion Notes Bibliography 3 The Republic of Misinformation The Victim Narrative A Question of Agency Victims and Opportunists Democracy Contra Disinformation Conclusion Notes Bibliography 4 The Conceit of Behaviorally Informed Paternalism (Ir)rationality, Sovereignty, and Welfare In Our Best Interest Searching for True Preferences Democratic Preference Laundering Conclusion Notes Bibliography 5 Fortifying Democracy for the Digital Age The Landscape of Democratic Reform One Step at a Time: Marginal Reform Boosts Budges Democracy Remodeled: Radical Reform Quadratic Voting Open Democracy An Anti-Psychological State Conclusion Notes Bibliography Conclusion: The Road Ahead Bibliography Index
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