English

How to Make an Action Attractive

Theoretical Economics 2026-04-17 v6

Abstract

A policymaker often wants to steer a decision-maker toward one of two actions, but lacks reliable knowledge of how the decision-maker perceives uncertainty or evaluates risk. We formalize a notion of robust paternalism: a modification a' of a desired action a is robustly more attractive than a relative to b if, for every belief over states and every increasing concave utility function, whenever the decision-maker prefers a to b, she also prefers a' to b. We characterize all such modifications directly in terms of state-dependent payoffs and discuss applications to political competition, bilateral trade, insurance, and information acquisition.

Keywords

Cite

@article{arxiv.2408.09294,
  title  = {How to Make an Action Attractive},
  author = {Marilyn Pease and Mark Whitmeyer},
  journal= {arXiv preprint arXiv:2408.09294},
  year   = {2026}
}
R2 v1 2026-06-28T18:15:40.151Z