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    Wanting, Liking, and Learning: Neuroscience and PaternalismAuthor(s): Colin F. CamererSource: The University of Chicago Law Review, Vol. 73, No. 1, Symposium: Homo Economicus,Homo Myopicus, and the Law and Economics of Consumer Choice (Winter, 2006), pp. 87-110

    Published by: The University of Chicago Law ReviewStable URL: http://www.jstor.org/stable/4495545.

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  • 8/10/2019 Liking and Learning. Neuroscience and Paternalism - C. F. Camerer

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    Wanting,

    Liking,

    and

    Learning:

    Neuroscience and

    Paternalism

    Colin

    F

    Camerert

    A

    large

    number of

    young

    children die

    every year

    from

    ingesting

    poisons by

    accident.

    Revealed-preference

    heory,

    he

    foundation

    of

    mi-

    croeconomics,

    has

    only

    two

    concepts

    to

    explain

    these

    accidents: eliefs

    and

    preferences (that

    is,

    utilities revealed

    by choices).

    In

    the

    belief-

    preference

    anguage,

    all we can

    say

    is that a

    child who died of

    acciden-

    tal

    poisoning

    either believed the

    poison

    was

    safe,

    and

    made a mistake,

    or

    that the child

    preferred

    death to

    life,

    and

    committedsuicide.While

    economic

    theory

    may

    be comfortable

    calling

    these accidents

    only

    mis-

    takes or

    expressions

    of

    preference,

    am

    not.

    My goal

    in

    this

    Essay

    is to

    acquaint

    the

    legal

    audience

    with ideas

    emerging

    in

    neuroscience that

    could

    potentially

    be

    a

    richer

    anguage

    for

    talking

    about cases like ac-

    cidental

    child

    poisoning

    and,

    more

    broadly,

    about

    welfare and

    pater-

    nalism

    in

    some limited cases. Further

    development

    of the framework

    could lead to a broaderview with wider

    applicability.

    The idea is that three separableneuralsystemsare relevant for

    choice and welfare: a hedonic

    "liking" ystem

    (welfare),

    a

    "wanting"

    system

    that

    guides

    choice,

    and a

    learning system

    that,

    ideally,

    links

    information tored

    in

    the other

    systems

    so

    that

    people

    choose to learn

    what

    they truly

    like. Other

    multiple-process

    neuroeconomic

    accounts

    use different

    components

    but have similar

    mplications.'

    t

    Rea

    A. and Lela G. Axline Professor of Business

    Economics,

    California nstituteof

    Technology.

    hanks o

    conference

    participants,

    o

    Meghana

    Bhatt,

    Ming

    Hsu,

    and Ian

    Krajbich

    for researchassistance, nd to Alice Linfor a presentation n theBerridgework.

    1

    See Drew

    Fudenberg

    nd David

    K.

    Levine,

    A

    Dual

    Self

    Model

    of Impulse

    Control

    Aug

    17,

    2005),

    online at

    http://post.economics.harvard.edu/faculty/fudenberg/papers/dualself.pdf

    vis-

    ited Jan

    17,

    2006)

    (arguing

    hat a

    simple

    "dual-self'

    model

    explains mpirical rregularities

    n

    self-

    control

    problems

    nd can

    give

    a value for commitment

    n

    decision

    problems);

    sabelleBrocasand

    Juan

    D.

    Carillo,

    The Brain as a Hierarchical

    Organization Aug

    2005),

    online at

    http://www-

    rcf.usc.edu/-juandc/PDFpapers/wp-brain.pdf

    visited

    Jan

    17,

    2006) (constructing

    model of con-

    sumption

    and

    time allocation hat is solved

    using

    ools frommechanism

    esign

    and economicsof

    information);

    .

    Douglas

    Bernheimand Antonio

    Rangel,

    Addiction

    and

    Cue-Triggered

    ecision

    Processes,

    4

    Am

    Econ Rev

    1558,1561

    2004)

    proposing

    modelof addiction hat s

    premised

    n a

    pathological

    ivergence

    etween

    choiceand

    preference

    onsisting

    f

    mistakes,

    nvironmental

    ues,

    and

    attempts

    by

    users

    to minimize heir

    mistakes);

    George

    Loewenstein

    and Ted

    O'Donoghue,

    AnimalSpirits:Affectivend Deliberative rocesses n EconomicBehavior July27,2004),onlineat

    http://gsbwww.uchicago.edu/research/workshops/behavioral/lowenstein.pdf

    visited

    Jan

    17,

    2006)

    (discussing

    model of humanbehaviorbased

    on the interactionof a deliberative

    ystem

    and an

    affective

    system);

    George

    Loewenstein,

    Out

    of

    Control:Visceral

    nfluences

    on

    Behavior,

    65

    Org

    87

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    88 The

    University f Chicago

    Law Review

    [73:87

    The

    Essay

    is

    organized

    n

    several

    parts.

    PartI sets the

    historical

    stage

    and then describesa canonical

    experiment

    (with mice)

    on

    want-

    ing

    and

    liking.

    Part II describes anecdotal evidence of

    wanting-liking

    gaps

    from

    psychological

    disorders and choices over time

    (addiction

    and credit card

    use).

    Paternalism

    enters

    in

    Part

    III,

    not with

    much

    vigor,

    but as

    a

    potentially

    efficient

    response

    to

    gaps

    in

    wanting

    and

    liking.

    Part

    IV

    suggests

    some directions

    for

    positive analysis.

    PartV

    concludes.

    I. REVEALED

    PREFERENCES

    AND

    WANTING-LIKING

    A.

    History

    of

    Thought:

    The Revealed-Preference

    Approach

    Is a

    Convention

    In

    the

    early

    1900s,

    VilfredoParetowon a

    debate

    among

    economists

    about the

    epistemological

    basis of

    utility,'

    a

    victory

    later cemented

    in

    the 1930s

    by

    the ordinalist evolution.

    Pareto and

    his

    contemporaries,

    uch as

    Edgeworth

    and

    Jevons,

    all

    believed

    in

    the "concrete

    deductive method" of John

    Stuart

    Mill,

    which starts with

    simple empirical regularities

    or "laws"

    and makes

    deductions from those

    regularities.3

    Furthermore,

    ll of these scholars

    believed that

    understanding

    he hedonic basis of

    utility

    was

    necessary,

    in a form that is now calledpsychology(butwas not calledpsychology

    then).

    As

    Jevons wrote:"But it is

    surely

    obvious

    that economics does

    rest

    upon

    laws of human

    enjoyment;

    and

    that,

    if

    those laws are

    devel-

    oped by

    no other

    science,

    they

    must be

    developed by

    economists....

    [T]he theory

    of

    economics must

    begin

    with

    a

    correct

    theory

    of

    con-

    sumption."

    Pareto's view was the

    opposite:

    he

    thought rooting

    economic

    preferences

    in

    psychological

    detail

    was an

    unnecessary

    burden.

    In

    an

    1897

    letter Pareto wrote:

    Behav & Hum Dec

    Proc 272

    (1996)

    (attributing

    ctions

    against

    self-interest

    despite

    full knowl-

    edge

    to visceral actors

    defined

    by

    a

    directhedonic

    mpact

    and an

    effect on the relative

    desirabil-

    ity

    of different

    goods

    and

    actions).

    2

    Consider

    Luigino

    Bruni and

    Robert

    Sugden,

    The Road Not

    Taken:Two

    Debatesabout

    the Role

    of

    Psychology

    n

    Economics

    1,

    2

    (unpublished

    manuscript

    002)

    (on

    file

    with

    author)

    (explaining

    hat the behavioral

    conomicsmovement s

    trying

    o reverse

    the

    approach

    nitiated

    by

    Paretoand others o

    remove

    psychology

    rom

    economics).

    3

    Later,

    Milton

    Friedman's

    essay,

    The

    Methodologyof

    Positive

    Economics,

    n

    Milton

    Friedman,

    Essays

    n Positive

    Economics3

    (Chicago

    1953),

    iberatedeconomists rom

    even hav-

    ing

    to start with

    empirical

    egularities.

    He

    suggested

    hat

    simple

    assumptions

    with no

    empirical

    backingcould also serve as a startingpoint,because

    they might

    lead to accurate

    predictions

    despite being "wrong."

    His "F-twist"s

    best seen as

    encouraging

    reduced-form

    tyle

    of model-

    ing

    in

    whichincorrect oundational

    assumptionsmight

    lead to

    good

    predictions

    because

    they

    approximate

    redictions

    rom moreaccurate oundational

    ssumptions

    hat are left

    unspecified.

    4 W.

    Stanley

    Jevons,

    The

    Theoryof

    Political

    Economy

    102-03

    (Penguin

    1970)

    (arguing

    that

    knowledge

    of the conditionsof

    human

    utility

    are

    necessary

    o understand

    conomics).

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    90

    The

    University

    f Chicago

    Law Review

    [73:87

    was

    an

    agreement

    on

    a convention for

    how to do

    economics,

    ike

    the

    rules

    of

    tennis,

    or

    assuming

    away

    friction

    n

    physics.

    Of

    course,

    the

    equation

    of

    utility

    and choice was also

    historically

    justifiable

    in

    the

    early

    1900s because

    measuringutility directly,

    at

    that

    time,

    was as far-fetched

    as,

    say,

    sending people

    to the moon or

    cloning

    animals. n Pareto's

    day

    there was no

    ability

    to

    place

    electrodes

    into a

    monkey

    or

    human

    brain

    and

    record

    firing

    rates

    of

    individual

    neurons,

    to alter

    genes

    in

    mice and see what

    those mice can't

    do,

    to record

    online brain

    activity

    with 3-mm

    spatial

    resolution

    using

    PET or

    fMRI,

    to

    identify

    areas of brain

    damage (lesions)

    in

    humans

    and

    see

    what

    skills those humans

    ack,

    to

    genotype people

    and

    correlate

    genes

    with

    behavior

    and

    skill,

    to

    give

    humans

    drugs

    and

    see

    how

    their behavior

    changes,

    or to create

    "temporary

    esions"

    using

    transcranial

    magnetic

    stimulation

    TMS).

    The

    huge

    advances

    n all

    these tools force

    the readerto draw one

    of two

    conclusions:

    1)

    Pareto was

    right

    in his

    own time-he and

    his

    peers

    shouldn't

    have

    tried

    to

    measure

    utility directly,

    t was

    hopeless-

    and

    his

    intellectualheirs are still

    right today,

    because

    their

    tools

    can't

    possibly

    measure

    utility,

    or

    (2)

    Pareto was

    right

    then because the tools

    didn't

    exist,

    but the

    neo-Paretians

    are

    wrong

    now

    because we have

    tools to measureutilitythat didn'texist in Pareto'stime (andthe tools

    will

    only get better).

    Conclusion

    (1) might

    be

    right,

    but

    betting

    that

    something

    is

    impossible

    in

    science is

    dangerous

    and

    neglects

    the

    op-

    tion value of

    exploring

    wild ideas.

    Conclusion

    (2)

    is the

    progressive

    conclusion

    with

    upside

    potential.

    The

    ideas n this

    Essay

    are

    not an insistence hat

    revealed-preference

    theory

    has not been useful.

    t

    has,

    and will continue o be. But the useful-

    ness

    of one

    theory

    ells us

    nothing

    aboutwhetheran alternative

    pproach

    mightprove equally

    useful.

    B.

    Beyond

    Revealed Preference:

    Types

    of

    Utility

    The

    distinction between

    utility

    and

    choice

    has

    been revived

    in

    two

    ways.

    First, Kahneman,

    Wakker,

    and

    Sarin

    noted that

    one

    can

    concep-

    tually

    distinguish

    our

    types

    of

    utility:experienced

    utility

    (the

    hedonic

    sensation at the

    time of

    consumption

    that

    Jeremy

    Bentham had in

    mind);

    remembered

    utility;

    forecasted

    utility

    (a

    forecast of

    experi-

    enced

    utility);

    and

    finally,

    he familiarnotion of

    decision

    utility (num-

    bersanobservercould use to rankanagent'srevealedpreferences).8

    8

    See Daniel

    Kahneman,

    Peter

    P.

    Wakker,

    nd Rakesh

    Sarin,

    Back to Bentham?

    Explora-

    tions

    of Experienced

    Utility,

    12

    Q

    J Econ

    375,376-77

    (1997);

    Daniel

    Kahneman,

    New

    Challenges

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  • 8/10/2019 Liking and Learning. Neuroscience and Paternalism - C. F. Camerer

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    2006]

    Neuroscience

    nd

    Paternalism

    91

    Thinking

    ike a

    psychologist,

    t

    is

    easy

    to

    see

    why

    these

    types

    of

    utility might

    differ.

    Remembered and

    experienced

    utility

    can differ

    because of

    nostalgic

    biases

    in

    memory (for example,

    the

    inability

    to

    recreate the

    pain

    of childbirth

    n

    imagination).

    Forecasted

    utility

    could

    be

    subject

    to

    "projection

    iases"relativeto

    experienced

    utility-people

    buy

    more

    groceries

    when

    they're

    hungry,'

    nd

    overestimate

    how

    badly

    they

    will feel

    if

    their favored candidate

    loses an

    election.10Most fun-

    damental for

    my

    purposes,

    decision

    utility

    could deviate

    from

    experi-

    enced

    utility

    f

    people

    have not

    yet

    learnedwhat

    they

    like

    (for

    example,

    children),

    or

    if

    there is some

    dissociationbetween

    wanting

    and

    liking.

    The

    revealed-preferences

    iew

    basicallyequates

    welfare

    (experi-

    enced utility)with choice (decisionutility),as a matterof the defini-

    tion of welfare.Is this the best we can

    do?

    If

    my

    neighbor thumps

    his

    head

    repeatedly

    with a

    ball-peen

    hammer,

    do I

    have no

    alternative

    but

    to infer that

    hammering

    his head

    with a

    ball-peen

    hammer s the most

    fun he can have?

    A

    more

    sensible direction is to

    study

    the relation

    between

    experienced

    and decision

    utility empirically.

    The

    second revivalof the debate about

    utility

    is

    work

    by

    the

    psy-

    chologist

    Kent

    Berridge

    and

    colleagues

    on

    "wanting,"

    learning,"

    nd

    "liking"

    hat addresses

    the

    measurement

    challenge,

    suggesting

    some

    waysin whichexperiencedutility(liking)and decisionutility (wanting)

    might

    differ,

    depending

    on

    learning

    hat

    potentially

    inks the

    two."

    My suggestion

    in this short

    Essay

    is that the

    wanting-learning-

    liking

    distinction

    provides

    a

    potential

    basis,

    grounded

    n

    neuroscience,

    for

    asserting

    hat choices are not

    alwaysutility-maximizing.

    n

    fact,

    the

    learning part

    of this frameworkwas

    clearly

    endorsed

    by

    Pareto as a

    justification

    for

    assuming

    that the

    "subjective

    act" of

    utility

    and the

    "objective

    act" of revealed

    preference

    are the same.

    A

    longer quota-

    tion

    containing

    he short

    excerptquoted

    above,

    reads:

    We will studythe many logical,repeatedactionswhich men per-

    form to

    procure

    the

    things

    which

    satisfy

    their tastes....

    [W]e

    are

    concerned

    only

    with certainrelationsbetween

    objective

    facts and

    subjective

    facts,

    principally

    he

    tastes

    of men.

    Moreover,

    we will

    simplify

    the

    problem

    still more

    by

    assuming

    that the

    subjective

    to

    the

    Rationality

    Assumption,

    50 J Institutional&

    TheoreticalEcon

    18,

    21

    (1994)

    (discussing

    the distinctionbetween

    he two

    primary

    otionsof

    utility: xperienced

    and

    decision).

    9

    See

    George

    Loewenstein,

    Ted

    O'Donoghue,

    and Matthew

    Rabin,

    Projection

    Bias in

    Predicting

    uture

    Utility,

    18

    Q

    J Econ

    1209,

    1215

    (2003).

    10 See DanielT.

    Gilbert,

    et

    al,

    Immune

    Neglect:

    A Source

    of

    Durability

    Bias in

    Affective

    Forecasting,

    5 J

    Personality

    & Soc

    Psych

    617,625

    (1998).

    11

    See Kent

    C.

    Berridge

    and

    Terry

    E.

    Robinson,

    Parsing

    Reward,

    6

    TRENDS in Neurosci-

    ences

    507,

    510-12

    (2003)

    (discussing

    he interactionsof

    wanting, earning,

    and

    liking

    in condi-

    tioned stimuli

    as motivational

    magnets,cue-triggered

    "wanting," esponse

    reinforcement,

    nd

    cognitive

    ncentives).

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    92

    The

    Universityf Chicago

    LawReview

    [73:87

    fact conforms

    perfectly

    to the

    objective

    fact.This can be done

    be-

    cause

    we will

    consider

    only

    repeated

    actions to be a basis

    for

    claiming

    hatthere s a

    logical

    connection

    uniting

    uch

    actions.1

    Pareto

    clearly implicates learning

    as a mechanism that

    brings

    wanting

    and

    liking together:

    A

    man who

    buys

    a

    certain food for the first time

    may buy

    more

    of it than is

    necessary

    to

    satisfy

    his

    tastes,

    price

    taken into

    ac-

    count. But

    in

    a

    second

    purchase

    he

    will

    correct his

    error,

    n

    part

    at

    least,

    and

    thus,

    ittle

    by

    little,

    will

    end

    up by procuring

    exactly

    what he needs. Wewill

    examine his action at the time when he

    has

    reachedthis

    state.

    Similarly,

    f

    at first he makes a mistake in his

    reasoning

    about what he

    desires,

    he will

    rectify

    t in

    repeating

    the

    reasoning

    and will

    end

    up by making

    t

    completely

    ogical."

    Thus,

    the standard

    assumption,

    hat choices reveal "true"

    utilities,

    is

    clearly

    endorsed

    by

    Pareto

    only

    for choices

    that

    are

    repeated

    often

    enough

    to ensure that

    learning

    has occurred.The

    wanting-learning-

    liking

    frameworkcan therefore be

    seen as a

    proper

    generalization

    of

    revealed-preference heory

    and,

    in

    fact,

    it is

    perhaps

    the kind

    of

    gen-

    eral

    theory

    Pareto

    had

    in

    mind

    in

    the first

    place.

    Bruni and

    Sugden

    note that the "discovered referencehypothesis"s a revivalof Pareto's

    idea.14

    They

    assert that

    rationalchoice

    theory applies

    after

    preferences

    have been

    "discovered"

    y

    trial-and-error

    earning

    and reflection.

    But

    this leaves a

    large

    and

    important

    hole:

    what

    happens

    before

    earning?

    Besides

    generalizing

    revealed-preference theory,

    the

    wanting-

    learning-liking

    ramework

    provides

    a

    potential way

    to talk

    scientifi-

    cally

    about how

    restricting

    or

    imposing

    choices

    (paternalistically)

    could

    improve

    welfare.

    The core idea is

    simple:

    f

    there are

    separate

    systems

    for

    recording iking,

    expressing

    wanting,

    and for

    learning

    to

    want what the brain likes, then paternalismcould be justified if the

    wanting system

    produces

    choices that are

    not later

    liked,

    and if

    a

    pa-

    ternalistic

    correction

    produces

    choices that

    are unwanted

    by

    an

    agent

    but will

    be liked

    by

    her,

    or that are

    wanted but

    not

    liked,

    and if

    the

    correction

    does not

    cause other

    harms

    (or

    much

    harm to

    rational

    agents).

    12

    Pareto,

    Manual

    of

    Political

    Economy

    at 103

    (cited

    n

    note

    6)

    (emphasis

    added).

    13

    Id

    (emphasisadded).

    14 See Bruniand

    Sugden,

    TheRoad Not Taken t7

    (cited

    in note

    2) (labeling

    he claim hat

    rational-choice

    heory

    can

    predict

    behaviorwhencertain

    criteriaare satisfiedas

    the "discovered

    preference

    hypothesis").

    ee

    also CharlesR.

    Plott,

    Rational ndividual

    Behaviour n

    Markets nd

    Social ChoiceProcesses:The

    Discovered

    PreferenceHypothesis,

    n

    KennethJ.

    Arrow,

    et

    al,

    eds,

    The

    RationalFoundations

    f

    EconomicBehavior

    225,

    226

    (St.

    Martin's

    996)

    (suggesting

    a the-

    ory

    that

    rational hoicesevolve

    through

    hree

    stagesreflecting

    xperience

    and

    practice).

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    8/25

    2006]

    Neuroscience nd

    Paternalism

    93

    By

    the

    way,

    note that

    I

    am

    truly

    not an

    eager paternalist.

    could

    care less about

    paternalism,

    per

    se.

    Paternalism

    s

    only

    interesting

    as a

    challenge

    for behavioral

    economics,

    both

    normatively

    and

    positively

    (to

    make sense of

    paternalism

    hat is

    currentlypracticed,

    and

    changes

    in

    paternalism

    across

    time

    and

    geography).

    At this

    point,

    the neuroscientificbasis

    for

    any practical

    paternal-

    ism

    is

    flimsy.

    But

    progress

    n

    neuroscience s

    very

    rapid.

    And of

    course,

    there

    is

    a

    genuine danger

    of a

    slippery

    slope

    in

    moving

    from

    paternal-

    ism that is

    designed

    to

    be

    unobjectionable,

    because it

    helps

    some

    and

    doesn't

    harm

    others,

    to

    paternalism

    hat

    is

    scary,

    ntrusive and

    wrong-

    headed. The

    political

    economy

    of

    capture

    by

    special

    interest

    groups

    also should make us wary, n practice, hat openingthe door to even

    the mildest

    paternalism

    could

    get

    out of hand. But

    it can't

    hurt to

    in-

    stigate

    a

    purely

    academicdebate about

    how limited

    paternalism

    might

    someday

    be

    scientifically

    ustified, subject

    to a reasonable

    consensus

    of

    scientists,

    awyers,

    and citizens.

    C.

    Wanting-Learning-Liking

    llustrated

    I will motivate

    my

    discussion

    by

    starting

    with details

    of

    a

    simple

    experiment

    with mice

    by

    Pecifia and

    colleagues."

    Their

    experiment

    uses mice with a dopamine transporter DAT) "knockdown"due to

    genetic engineering.

    As

    I

    understand

    t

    (which

    is not

    well),

    the knock-

    down mice

    produce

    only

    about 10

    percent

    as much

    dopamine

    trans-

    porter

    (which

    "takes

    up"

    or

    recycles dopamine)

    as the control

    mice,

    but as

    a

    result

    have 70

    percent

    more extracellular

    dopamine sloshing

    aroundbetween

    neurons.

    When

    freely

    allowedaccess o

    food and

    drink,

    he DAT-knockdown

    mice

    consumed

    twice as much as the control

    mice.This

    difference,

    by

    itself,

    does not tell

    you

    whether

    hey

    liked the

    consumption

    r

    just

    wanted

    it more.

    The

    mice were also

    put through

    a

    standard

    "runway"

    ask,

    in

    which

    they

    are

    kept hungry

    for

    eight

    hours,

    then trained

    to move

    down

    a short

    runway

    from

    a start

    box to a

    goal

    box

    containing

    food.

    During

    a

    learning

    period,

    the DAT-knockdown

    mice ran about twice

    as

    quickly

    down

    the

    runway

    as the control

    mice

    and were much

    less

    likely

    to

    reverse course

    or

    pause

    and

    sniff.

    Because

    the knockdown

    and

    control

    mice are about

    equally

    fast

    in

    a

    pretraining

    phase,

    and

    15

    See Susana

    Pecifia,

    et

    al,

    Hyperdopaminergic

    utant

    Mice Have

    Higher"Wanting"

    ut

    Not

    "Liking"for

    weet

    Rewards,23

    Neuroscience9395

    (2003)

    (finding

    hat

    chronically

    levated

    extracellular

    opamine

    n

    mutant

    micefacilitates

    wanting"

    utdoes

    notincrease

    "liking").

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    94

    The

    University

    f

    Chicago

    Law Review

    [73:87

    equally

    fast after a lot of

    training,

    his difference

    during earningsug-

    gests thatextra dopaminefacilitates

    asterlearning.16

    These

    experiments

    show that the DAT-knockdown mice

    eat

    more,

    and learn there's food

    waiting

    in

    the

    goal

    box faster than

    the

    control

    mice

    do,

    but do

    they actually

    ike food and

    liquid

    more?

    Here

    we have

    no

    choice

    but

    to skate

    out onto thin

    empirical

    ce: how do

    you

    measure

    iking?

    If

    you

    are

    open-minded

    about the

    possible

    difference

    between

    choice,

    which is

    observable,

    and

    liking

    (true

    utility),

    which is not as

    readily

    observable,

    hen

    you

    should

    accept

    that

    any

    measure

    of

    true

    utility

    won't

    be as

    sharp

    and

    agreeable

    as

    observing

    choice is.

    If

    you

    aren'twillingto acceptthis sadfact,stopreadingnow.

    Pecifia and

    colleagues

    measure

    iking

    and

    dislikingusing

    physical

    movements of the

    mice--tongue

    protrusions

    and

    paw licking

    to

    repre-

    sent

    liking,

    and

    gaping (mouth-opening,

    ike a

    yawn), screwing

    up

    the

    face,

    and

    arm

    flailing

    to

    represent

    disliking.

    Your first reaction

    might

    be

    that these are not serious scientific measures.But

    they

    are taken

    very seriouslyby people

    who

    study

    animals,

    because

    they

    are the best

    availablemeasuresof

    liking"

    putting

    observed

    choice

    aside,

    of

    course;

    if

    you

    use choice to infer

    liking

    we're back

    to

    square

    one

    with

    Pareto).

    These expressionsand movements are also very similar acrossmice,

    primates,

    and human

    infants;

    n

    fact,

    they

    are so similarthat

    research-

    ers use

    an

    equation (d

    =

    .26(w)32)

    o

    predict

    the

    duration

    (d)

    of

    a fa-

    cial

    expression

    (in

    milliseconds)

    n

    terms

    of a

    species'

    body

    weight (w)

    (in

    kilograms).'8

    In

    any

    case,

    these

    measures

    of

    liking

    and

    disliking

    show

    that the

    DAT-knockdown

    mice do

    not

    like

    the sucrose solution

    more

    than

    the

    control mice.

    In

    fact,

    1.0

    M

    sucrose,

    the

    largest

    concentration,

    s liked

    significantly

    ess

    by

    the

    knockdown

    mice."

    16

    See SamuelM.

    McClure,

    Nathaniel

    D.

    Daw,

    and

    P.

    Read

    Montague,

    A

    Computational

    Substrate

    or

    Incentive

    alience,

    6 TRENDS n

    Neurosciences

    23,424

    (2000).

    17

    Methods ike this

    are used

    by

    pediatricians

    o

    judge

    how

    much

    pain

    children

    are

    in.

    An

    "oucher" cale is used

    by

    pediatricians

    o

    map

    facial

    expressions

    nto a numerical

    cale.

    See,

    for

    example,

    How to

    Use the

    Oucher,

    online at

    http://www.oucher.org/differences.htmlvisited

    Jan

    17,

    2006).

    See

    also,

    for

    example,

    Rita

    Rubin,

    Kids' Distress

    s No Small

    Thing,

    USA

    Today

    D1-2

    (May

    9,

    2005).

    This can

    be

    thought

    of as a

    utility

    unction hat

    maps

    facial

    expressions

    nto

    nu-

    merical

    "true

    disliking."

    f the

    goal

    is

    to

    prescribe

    an

    optimal

    dose of

    painkiller, ou

    can't

    ust

    let

    a

    child

    "choose"a dose.

    Therefore,

    nferring

    children's

    disutility

    pain--from

    choice is

    a bad

    idea.

    Inferring

    heir

    pain

    from

    facial

    expressions

    s a

    good

    idea.

    18 See BerridgeandRobinson,26TRENDSinNeurosciences t 509

    (cited

    n note

    11).

    19

    A

    concern

    in

    the

    study

    is

    that the

    eating

    task used

    regular

    food

    (Purina

    Rat

    Chow)

    and

    water;

    he

    learning

    ask

    used Froot

    Loops;

    and the

    liking

    measuresused

    sucrosesolution.I

    pre-

    sume

    Pecifiaand

    colleagues

    are

    comfortable

    with the

    working

    hypothesis

    hat

    knockdown

    mice

    do not

    have different astes for

    any

    of these

    substances hancontrol mice do. See

    also Kent

    C.

    Berridge

    and

    Terry

    E.

    Robinson,

    What Is the Role

    of

    Dopamine

    in Reward:

    Hedonic

    Impact,

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    2006]

    Neuroscience nd Paternalism

    95

    This is

    just

    one

    study

    that

    shows

    a

    potential

    dissociation

    between

    wanting

    and

    learning,

    which the

    knockdown

    mice

    reveal

    more

    of,

    and

    liking,

    which

    they

    reveal less of.

    They

    eat and drink

    more,

    but don't

    seem to like it.

    The same kinds

    of

    wanting-liking

    issociationshave been

    shown

    in

    experiments

    with humans.20

    Dopamine-receptorantagonists

    appear

    to

    suppress

    cigarette-smokerwanting

    without

    changing

    (self-reported)

    pleasure

    rom

    cigarettes.2'

    Environmentalues create

    earnedassociation

    with

    pleasurable

    rug

    use;

    when

    these cues are

    presented hey

    can

    create

    rapid craving,

    ust

    like the

    conditionedstimulus

    produced

    salivation n

    Pavlov's

    dogs.

    These

    cues are

    clearly

    affecting

    wanting, hough

    they may

    not affecteventual iking.

    An

    importantproperty

    of the

    wanting

    and

    liking systems

    is that

    they may

    react

    implicitly,

    without consciousness.

    For

    example,

    drug

    addicts

    will work

    (lever-pressing)

    or doses of stimulantsor

    morphine

    that are

    so low that the addicts

    report

    no

    subjective

    effects

    and have

    no measurableautonomic

    responses.

    That

    is,

    the addictsdetect

    enough

    of the

    drug

    to

    keep

    wanting

    the low

    doses,

    but don't

    think

    they

    are

    getting any dose at

    all.22

    Berridge

    and Robinson

    suggestgeneralregions

    of the mouse brain

    that areresponsible or wanting,iking,and

    learning.23

    Nobodyhas con-

    structedsuch a

    neurogeographical

    map

    of

    utility

    for the

    human

    brain,

    and

    it

    will be

    a

    long

    time before we have a

    good

    one.

    (Furthermore,

    utility

    for

    food,

    shopping,

    drugs,

    ex,

    and

    golf may

    all work

    differently,

    so we'll need a

    book of brain

    maps.)

    But the

    point

    is that

    such a

    map

    has

    already

    been

    proposed

    for

    mice,

    based

    on a

    relatively

    recent and

    modest amount

    of research.So

    it is conceivable that at least a

    rough

    Reward

    Learning,

    r Incentive

    Salience?,

    8

    Brain

    Rsrch Revs

    309,

    350

    (1998) (finding

    hat do-

    pamine-depleted

    atsstill

    "like" ewards nd

    simply

    ail to "want"

    ewards).

    20

    See

    Berridge

    and

    Robinson,

    26 TRENDS

    in

    Neurosciences

    at 508

    (cited

    in

    note

    11)

    (discussing

    how

    drug

    addicts

    will work for low doses of stimulants

    r

    morphinedespite

    no sub-

    jective

    effect).

    See also Carl

    L.

    Hart,

    et

    al,

    Methamphetamineelf-administration

    y

    Humans,

    157

    Psychopharmacology

    5,

    80

    (2001) ("[S]everal

    nvestigators

    have

    reported

    data

    demonstrating

    that

    drug-related positive'

    subjective

    effects do

    not

    entirely

    account

    for

    drug-taking

    ehavior

    andsome have

    suggested

    hat otherfactors hould

    also be

    considered.").

    21

    See Lisa

    H.

    Brauer,

    t

    al,

    Haloperidol

    Reduces

    Smoking

    of

    Both

    Nicotine-containing

    nd

    Denicotinized

    Cigarettes,

    59

    Psychopharmacology

    1,

    34-35

    (2001)

    (discussingexperimental

    resultswhere

    haloperidol,

    a

    dopamine-receptor ntagonist,

    was administered nd

    significantly

    reduced

    moking

    behaviorbut did not affect how much

    he

    subjects

    iked

    smoking).

    22

    See

    Berridge

    and

    Robinson,

    26 TRENDSinNeurosciences t508

    (cited

    n

    note

    11).

    23

    See id at

    510

    (containing

    schematic

    xplanation

    f

    regions

    of the brain hatare linked

    to

    wanting, iking,

    and

    learning).

    Their

    analogous

    ermsare

    motivation

    wanting)

    andemotion or

    affect

    (liking).

    dat 508.

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    11/25

    96 The

    University f Chicago

    Law Review

    [73:87

    understanding

    f

    wanting, earning,

    and

    liking

    could

    emerge

    for

    hu-

    mans,probablyat first

    for a

    specialized

    domain

    ike

    food.24

    Having separate systems

    for

    wanting, earning,

    and

    liking

    makes

    sense

    from an

    evolutionarypoint

    of

    view.Take food as a

    simple

    case.

    First

    note that unless tastes for

    specific

    foods

    are

    truly

    genetically

    hardwired,

    ome kind of

    learning

    system

    is

    necessary

    to connect the

    sensory

    properties

    of food-how it

    smells,

    feels,

    and looks-to how

    much an animal ikes

    specific

    foods.

    This

    basic

    learning

    s

    what infants

    do for

    months-putting

    everything

    n

    sight

    in

    their

    mouths to see

    how

    things

    taste.

    An

    infant who tastes dirt doesn't

    anticipate

    iking

    dirt-

    she

    just

    exhibits

    wanting,

    which is

    really

    just

    wanton

    exploration (to

    create inputs for the learningsystem).Then she gradually earnsthe

    difference

    between

    brown,

    crumbly

    stuff that tastes bad-dirt-and

    brown,

    crumbly

    tuff that

    tastes

    good gooey

    brownies.

    The fact that the

    learning system

    exists

    at

    all is

    prima

    facie

    evi-

    dence

    that

    wanting

    and

    liking

    are not

    automatically

    inked at

    birth;

    learning

    s there for a

    reason,

    and the reason is to educate

    the

    wanting

    system

    about what is liked. But

    why

    would

    wanting

    and

    liking

    occur

    in

    separate

    brain

    regions?Berridge

    and Robinson

    propose

    that

    liking

    for

    food, sex,

    and warmth

    rely,

    at

    least to some

    extent,

    on

    quite

    different

    sensory systemsfor processingsmell, heat,andtaste.A separatewant-

    ing

    system

    is

    needed to combine

    these

    signals

    into a "common cur-

    rency,"25

    n

    order

    to

    make tradeoffs between

    goods

    that are liked in

    (sensorily)

    different

    ways.

    Wanting

    and

    liking may

    also

    deviate,

    usefully,

    n

    the

    special

    case

    of

    pregnancy.

    When

    my

    wife was

    pregnant,

    he had a fierce

    craving

    or

    lamb-one of her

    favorite foods-then

    almost vomited after

    taking

    one bite. Her

    wanting

    system

    had

    tuned to her own

    tastes but the

    cir-

    cuitry

    protecting

    he delicate

    fetus

    registeredrapid

    dislike.

    Learning

    s

    the

    mechanism hat trains

    wanting

    about what is

    actu-

    ally

    liked

    by

    trial-and-error.

    owever,

    n

    the

    modem

    economy,many

    of

    the

    goods people

    purchase

    are

    much

    more

    complex

    o

    process

    and

    rep-

    24

    A

    similar

    body

    of research

    n

    humans ocuses attentionon

    "actor-critic"

    odelsof tem-

    poral

    difference

    TD)

    learning.

    n

    TD

    learning,

    n

    organism

    earnsa

    value

    function

    according

    o

    an

    adaptive

    updating

    equation

    driven

    by

    the

    prediction

    error

    (or

    temporal

    difference).

    John

    O'Doherty

    and

    colleagues

    have

    located areas of

    striatum

    in

    the brain's

    emporal

    obe)

    that

    correspond

    o "critic"

    emporal

    differences,

    and

    other areas that

    correspond

    o

    an "actor's"

    expected

    reward

    or forecast.

    ohn

    O'Doherty,

    t

    al,

    DissociableRoles

    of

    Ventral nd

    DorsalStria-

    tum in

    Instrumental

    Conditioning,

    04 Science

    452

    (2004).

    In

    terms of this

    Essay,

    the

    actor is

    wanting, nd he critic ystem s

    learning,

    which

    adjusts

    wanting

    o it learns hetruevalue

    (liking).

    25

    See Peter

    Shizgal,

    On the Neural

    Computation

    f Utility: mplicationsrom

    Studies

    of

    Brain Stimulation

    Reward,

    n

    Daniel

    Kahneman,

    Ed

    Diener,

    and Norbert

    Schwarz, ds,

    Well-

    Being:

    TheFoundations

    f

    Hedonic

    Psychology

    500,

    509-10

    (Russell

    Sage 1999)(discussing

    he

    necessity

    and existence of a

    currency

    unction to break down

    different stimuli into decision

    utility wanting)).

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    2006]

    Neuroscience nd

    Paternalism

    97

    resent than are

    simple

    foods. The

    learning

    necessary

    to link

    wanting

    and

    liking

    of such

    goods through

    trial-and-error

    einforcement s

    ei-

    ther

    impossible (planning

    the

    perfect

    once-in-a-lifetime

    wedding)

    or

    very

    slow.

    Other mechanisms

    may

    substitutefor direct

    learning

    about

    com-

    plex

    choices

    (personal

    advice, mitation,

    advertising).

    But it is

    not

    likely

    that

    the humanbrain has

    developed

    a

    special

    patch

    for

    unique impor-

    tant decisions that

    links imitation

    directly

    to actual

    iking.

    At

    best,

    hu-

    mans

    would

    have a

    capacity

    to learn at a

    young

    age

    whose

    advice to

    take

    (i.e., they develop

    a

    tightly coupled wanting-likingoop

    for

    good

    advice;

    and advice

    that is taken then

    triggerswanting

    or a

    good,

    which

    is a sensible forecast

    of

    later

    liking

    because that's what

    "good

    advice"

    means).

    Such a

    systemmight

    work

    well,

    but

    probably

    not

    perfectly,

    and

    might

    be vulnerable

    o

    exploitation

    by profit-maximizing

    irms

    (for

    ex-

    ample,celebrity

    endorsements

    mighthijack

    uch a

    system).

    II. HUMAN MISFIRES

    IN WANTING AND LIKING

    A. Disorders

    The

    most

    compelling examples

    of

    wanting-liking

    aps

    are

    patho-

    logical

    disorders hat

    people clearly

    would

    like

    to

    change

    if

    they

    could.

    Obsessive-compulsive

    disorder

    (OCD)

    is a

    psychiatric

    disorder

    characterized

    by

    obsessive

    thoughts

    and

    compulsive

    actions,

    such as

    cleaning,

    checking,

    counting,

    or

    hoarding.26

    "Cleaners"

    report

    an

    in-

    tense

    feeling

    that

    their hands are not

    clean,

    and

    must

    be washed over

    and

    over to reduce that

    feeling. "Checking"

    s

    similar.

    My

    father used

    to

    compulsively

    check the four oven stove dials

    in

    our house before

    leaving

    the house-he

    would

    point

    to each

    and

    say

    "off,

    off, off,

    off,"

    partly

    coping

    with embarrassment

    y making

    fun

    of his

    mild

    checking

    compulsion.

    Sometimes he would

    stop

    the

    car,

    halfway

    out

    the drive-

    way,

    and

    get

    out to double-check hat the frontdoorwas locked.

    In

    the

    revealed-preferences pproach,

    we

    would

    infer

    that

    compul-

    sive cleaners

    have a

    high utility

    for

    clean hands.Some sensible

    predic-

    tions

    may

    come from this

    inference--for

    example,

    cleaners

    spend

    a

    lar-

    ger

    income share

    on

    cleaning

    han noncleanersdo.

    But the

    revealed-preferences

    view

    only gets you

    so far.

    If

    you

    give

    compulsive

    cleaners

    a serotonin

    reuptake

    inhibitor

    (SSRI)

    like

    fluoxetine

    (Prozac)

    or

    paroxetine

    (Paxil),

    a

    majority

    of cleanersfind

    26

    Note that the

    DAT

    knockdownmutant

    mice exhibit

    "sequential uper-stereotypy"

    n

    grooming

    hat

    is

    remarkably

    imilar o OCD

    cleaning

    n humans.See Kent C.

    Berridge,

    t

    al,

    Sequential uper-stereotypy

    f

    an Instinctive ixedAction Patternn

    Hyper-dopaminergic

    utant

    Mice:

    A

    Model

    of

    Obsessive

    Compulsive

    Disorder and

    Tourette's,

    (4)

    BMC

    Biology (2005),

    online at

    http://www.biomedcentral.com/content/pdf/1741-7007-3-4.pdf

    visited

    Jan

    17,

    2006).

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    98

    The

    University

    f

    Chicago

    Law

    Review

    [73:87

    that

    their

    symptoms

    are diminished.Of

    course,

    we can

    easily

    stretch

    revealed-preference

    anguage

    to allow

    "state-dependence"

    f clean-

    ing-utility,

    which is altered

    by

    these

    drugs.

    But

    patientsactively

    seek

    out these

    drugs

    to

    change

    their

    preferences.

    To talk about the demand

    for

    a

    cure,

    we need

    to

    posit

    a

    "metapreference"

    n which cleaners

    pre-

    fer to be

    symptom-free

    han to be

    compulsive.

    Their

    metapreference

    s

    expressed

    n demand

    for

    Prozacor Paxil.

    A

    big

    advantage

    of

    revealed-preference

    heory

    is

    simplicity.

    But

    addingconcepts

    of

    state-dependence

    nd

    metapreference uickly

    makes

    the

    theory

    complicated,

    not

    simple.

    And even

    if enriched revealed-

    preference

    theory

    can accommodate hese

    phenomena,

    he details of

    how

    preferences

    are linked to

    genes

    and childhood

    behavior,

    how

    "states"ike

    SSRI

    drugs

    work,

    and whether

    agents

    understandhe source

    of

    their behaviorand the

    state-dependence,

    which all matter for

    good

    prediction,

    equire

    a lot of

    empirical nput

    rom

    outside

    economics

    per

    se.

    The

    language

    of

    wanting

    and

    liking

    could

    be even

    simpler.

    In

    wanting-liking

    erms,

    an

    OCD

    patient

    wants

    to clean but does not

    like

    it. Most

    say

    that

    they

    do not

    like

    cleaning

    per

    se

    -

    it

    can be

    very

    time-

    consuming,

    doesn't

    bring

    pleasure,

    and direct measurement

    (facial

    expressions,self-report, maging

    of striatum

    activity)

    would

    probably

    show that

    liking

    is low. But such a

    patient

    is

    motivated,compulsively,

    to clean

    (she

    "wants"

    o).

    SSRI

    drugs

    reduce

    wanting.

    Patients

    take

    medication to override

    their

    wantingsystem.

    The

    OCD

    example

    is a

    relatively easy

    one. Of

    course,

    the

    want-

    ing-liking

    framework s useful

    only

    if

    there are more common behav-

    iors,

    with

    substantialeconomic

    consequences,

    hat

    can be seen

    as re-

    flecting wanting-liking aps.

    Most of

    the

    obvious

    examples

    have to do

    with time

    preference,

    which

    I'll

    discuss

    n

    the next Part.

    Another

    interesting example

    is

    the behavior

    of

    "shopaholics."

    Compulsive hopping

    s a disorder

    with formal

    diagnostic

    riteria

    analo-

    gous

    to those for

    compulsivedrug

    use

    or

    gambling.27

    will use

    it as

    a

    casual

    example

    just

    because it

    is

    a name for a

    possible

    disconnectbe-

    tween

    the

    transitory leasure

    from

    buying

    goods

    and the later

    pleasure

    from

    consumption.

    A

    different class

    of behavior nvolves

    "virtuous

    n-

    tentions" ike

    buying

    exercise

    equipment

    or

    a health club

    plan."8

    27

    See

    LorrinM.

    Koran,

    et

    al,

    Citalopram

    Treatment

    f

    Compulsive

    Shopping:

    An

    Open-

    LabelStudy,63 J ClinPsychiatry 04,704 (2002)(showing hat treatmentwith the antidepres-

    sant

    citalopram

    Celexa)

    reduces

    hopping ompulsion).

    28

    Stefano Della

    Vigna

    andUlrike

    Malmendier,

    aying

    Not to

    Go

    to the

    Gym

    22

    (unpub-

    lished

    manuscript

    2005),

    online at

    http://emlab.berkeley.edu/users/sdellavi/wp/gymemp05-04-

    20.pdf

    (visited

    Jan

    17,

    2006) (explaining

    he irrationalbehaviorof

    gym

    users' contractchoices

    based on theiroverestimation f future

    efficiency

    or

    self-control).

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    2006]

    Neuroscience nd Paternalism

    99

    An

    economist's

    definition

    of

    shopaholism

    s

    systematically

    buying

    goods that are not later

    consumed.9

    Such

    a

    disorder

    could result

    from

    a

    wantingsystembuying goods

    that

    the

    likingsystem

    doesn't

    appreci-

    ate

    (like

    closets

    full of shoes that are never

    worn).

    Of

    course,

    in

    the

    language

    of belief and

    preference,

    one could

    argue

    that

    shopaholics

    are mistaken

    n their beliefs

    about future

    consumption or

    their

    budget

    of time to use

    goods).

    Then

    the

    challenge

    s

    explainingwhy they

    don't

    learn

    from

    a chronic

    pattern

    of

    purchase

    and disuse.

    An

    extremeform of

    shopaholism

    s an

    OCD disorder

    called

    "col-

    lecting"

    or

    "hoarding"

    n

    which

    people

    collect items to an

    extreme.

    A

    milder

    orm

    s

    probablypresent

    n all

    of us:

    most

    people

    have at least

    one

    class of

    goods

    or services

    they enjoy shopping or,

    but

    they

    don't have

    enough

    time or inclination o

    actually

    consume.Mine is

    books-I love

    getting

    books,

    but

    never

    get

    around o

    reading

    hem all.

    My

    wife

    is ob-

    sessed

    with

    buying

    marinades.

    We

    have around

    wenty,

    whichare invaria-

    bly opened

    once and then

    sit

    patiently

    or

    years, hree-quarters

    ull.

    B.

    Wanting

    and

    Integration

    of

    MomentaryLiking

    over Time

    Food is a useful kind

    of

    good

    for

    exploring

    the neural basis of

    wanting

    and

    liking,

    because mechanisms

    are

    common across

    species

    and consumptionis immediate. But for most goods and services of

    economic

    interest to humans

    education,

    savings,

    durables,

    redit card

    use-costs and

    benefits are

    spread

    out over

    time. It

    may

    be

    very

    un-

    comfortable

    to learn

    to windsurf or to

    struggle

    through college

    (the

    liking system

    is

    not

    happy

    during

    the

    learning),

    but

    rewards

    come

    in

    the

    form

    of later

    liking (windsurfing)

    r future

    iking

    of

    goods

    that can

    be

    bought

    with

    increased

    wages

    from a

    college

    education.

    The

    wanting

    system

    has to

    integrate

    these

    likes and dislikes over

    time

    to determine

    overall

    liking.

    One method for integrating iking is exponentialdiscountingof

    future

    rewards,

    which

    corresponds

    to

    dynamic consistency

    in choice

    and has much normative

    appeal.30

    A more

    general approach

    s

    models

    of

    present-biased

    preferences

    (for example,quasihyperbolic

    iscount-

    ing),"

    which

    splice

    a

    preference

    for

    immediacy

    and conventional

    dis-

    29

    The closest

    clinicians ome to

    an

    economic

    definition

    s the

    "[f]requent

    uying

    of

    more

    than can

    be

    afforded,

    more

    than is

    needed,

    or

    for

    longer periods

    of time

    than intended."

    Kim

    Bullockand

    Lorrin

    Koran,

    Psychopharmacology

    f CompulsiveBuying,

    39

    Drugs

    of

    Today

    695,

    696

    (2003).

    30 Forshort-lived

    pisodes

    where

    discounting

    s

    likely

    to be weak

    (for example, valuating

    an

    operation,

    movie or a weekend

    getaway),

    Kahneman,

    Wakker,

    nd Sarin

    propose

    and axio-

    matize a rule that takes

    the

    integral

    of

    momentaryiking

    over time.112

    Q

    J Econ at 390

    (cited

    n

    note

    8).

    31

    See Ted

    O'Donoghue

    and Matthew

    Rabin,

    Doing

    It Now

    or

    Later,

    89Am EconRev

    103,

    106

    (1999) (discussingpreferences

    as

    time-inconsistent r

    present-biased,

    meaning

    that a

    per-

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    100

    The

    University

    f Chicago

    Law Review

    [73:87

    counting

    of future

    rewards.32

    hese

    preferences

    can be characterized s

    reflecting

    behaviorof a

    wanting

    system

    that

    weights

    current

    iking

    too

    heavily,compared

    to

    exponentialdiscounting.

    Let's

    consider two ex-

    amples:

    addictive

    drugs

    andcredit card

    spending.

    1. Addictive

    drugs.

    The hallmarks

    of

    addictive

    drugs

    are tolerance

    (larger

    doses are

    needed to

    produce equal

    hedonic

    sensations)

    and withdrawal

    (un-

    pleasant physical

    sensations

    during

    abstinence).

    A naturaland fruitful

    way

    to model these effects is

    through state-dependence

    of current

    utility

    on

    past

    consumption;"3

    r a richer

    view in whichstates are

    nu-

    mericalsummariesof use historiesthat go up or down when addicts

    use

    or

    abstain.4

    In

    any

    case,

    a

    central ssue

    is

    whether

    potential

    addicts

    rationally anticipate

    how current

    consumption

    creates

    tolerance

    and

    possible

    future withdrawal.

    A

    key prediction

    of the

    rational addiction

    model is that

    current

    consumption

    responds

    to

    expected

    future

    price

    changes,

    as it

    appears

    o do."

    Aggregated

    data are too

    coarse,however,

    to tell whether some

    potential

    addicts refuse to

    start,

    or whether ac-

    tive

    users

    quit,

    n the

    face of future

    price

    increases.

    In

    the

    wanting-liking

    view,

    addiction means that

    wanting

    can

    be

    createdby a desire to avoidthe painof withdrawal, r is triggeredby

    craving

    ("self-medication"),

    ut the

    drug

    administrations not

    actually

    son's

    relative

    preference

    or

    well-being

    at

    an

    earlierdate versus

    a

    laterdate

    will

    changedepend-

    ing

    on when he

    or she

    is

    asked);

    David

    Laibson,

    Golden

    Eggs

    and

    Hyperbolic

    Discounting,

    12

    Q

    J Econ

    443,445-46

    (1997)

    (discussing

    ow

    decisionmakers

    oresee their own

    dynamically

    ncon-

    sistent discountrates over short

    horizons

    (high)

    and

    long

    horizonsand commit

    themselvesto

    nonliquid

    assetsto

    constrain heir

    future

    elves).

    32

    See

    SamuelM.

    McClure,

    t

    al,

    Separate

    Neural

    Systems

    Value mmediate nd

    Delayed

    Monetary

    Rewards,

    06

    Science

    503,

    506

    (2004) (describing

    how

    separate

    functions xist in the

    brainassociatedwithimmediatepreferences possiblyreflectingevolutionary daptations)and

    abstract uture

    preferences

    and

    how

    these

    separate

    unctions

    may explain

    the

    idiosyncrasies

    f

    human

    preferences).

    33

    See

    generally

    Gary

    S.

    Becker and KevinM.

    Murphy,

    Theory f

    Rational

    Addiction,

    6

    J Polit Econ 675

    (1988)

    (describing theory

    of

    rational

    addiction hat

    is

    partially

    based on

    what

    state of addiction n

    addict

    s

    in).

    34

    See Bernheim

    and

    Rangel,

    94 Am

    Econ

    Rev at

    1565

    (cited

    in

    note

    1)

    (modeling

    addic-

    tive states

    by

    incrementing

    r

    decrementing

    he

    state

    of

    addiction

    based

    on

    decisions o use

    or

    not

    to use-a

    higher

    state

    corresponds

    o

    greater

    addiction,

    or

    example,

    omeone in state 8 is

    more addicted han

    someone n

    state

    5).

    35

    See

    Gary

    S.

    Becker,

    Michael

    Grossman,

    nd Kevin M.

    Murphy,

    n

    Empirical

    Analysisof

    Cigarette

    Addiction,

    84 Am

    Econ Rev

    396,

    397

    (1994)

    (discussing

    how a

    one-period

    price

    in-

    crease of 10

    percent

    reduces

    consumption

    n the

    previousperiod by

    0.6

    percent).

    See also Jona-

    than Gruber

    and Botond

    Kbszegi,

    s Addiction"Rational"?

    heory

    and

    Evidence,

    116

    Q

    J Econ

    1261,

    1273

    (2001)

    (showing

    hat consumers

    ncrease

    consumption y

    hoarding

    cigarettes

    n an-

    ticipation

    of futuretax

    increases);

    Angela

    A.

    Hung,

    A Theoretical nd

    Empirical tudy

    ofAddic-

    tion

    86-87,

    unpublished

    hD

    dissertation,

    California nstituteof

    Technology2001)(finding

    hat

    cigarette

    consumers re

    forward-looking

    n

    respect

    o

    prices).

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    2006]

    Neuroscience nd Paternalism

    101

    pleasurable.

    (At

    best,

    it cures the

    withdrawal

    symptoms;

    but other

    cures,

    like

    rehabilitation

    or

    methadone,

    which do

    not feed

    the addic-

    tion as

    self-medicating

    doses

    do, may

    be

    available.)

    As

    Bernheim and

    Rangel suggest,

    it is sensible to

    entertain

    the idea

    that when

    craving,

    addicts'

    wanting

    systems

    are not

    fully

    accounting

    or

    the

    future dislike

    (or internality)

    created

    by

    currentuse. This

    phenomenon

    is

    not

    easily

    explained by hyperbolic discounting,

    because

    exogenous

    cues--like

    seeing drug

    use

    in

    a

    film--can

    triggercraving.36

    2. Creditcard

    spending.

    For the sake of

    argument,

    uppose

    that at least some

    consumers

    chargetoo much on their creditcards, n the sense of revealinga want-

    ing-likinggap (at

    least

    ex

    post).

    This

    may

    be due to

    poor

    understand-

    ing

    of how interest

    rates

    work

    (for

    example,

    how

    rapidly

    nterest com-

    pounds)

    or insufficient

    appreciation

    or the status

    quo

    bias of

    sticking

    with one card after an introductory teaserrate"period lapses."

    Another

    possibility,

    n

    wanting-liking

    erms,

    s

    that the brain likes

    walking

    out

    of a store

    (or

    clicking

    an internet radio

    button,

    or

    calling

    an 800-numberand

    imagininggoods being shipped),

    but the

    wanting

    system

    does not

    anticipate

    the

    "pain

    of

    paying"

    when

    the

    credit card

    statement arrives."That is, currentwantingdoes not integratefuture

    dislike.

    III.

    PATERNALISM

    I

    adopt

    the textbook

    definition

    of

    paternalism

    as "the interfer-

    ence of a state or an

    individual

    with

    another

    person, against

    his

    will,

    and

    justified

    by

    a claim

    that

    the

    person

    interfered

    with will

    be better

    off or

    protected

    from harm."39

    In

    my

    terms,

    paternalism

    could be

    justified,

    n terms

    of

    a

    person'sown

    welfare,

    f the

    wanting system

    does not

    produce

    what the

    liking

    36

    See David

    Laibson,

    A

    Cue-

    Theoryof

    Consumption,

    16

    Q

    J Econ

    81,

    82-83

    (2001) (ex-

    plaining

    a cues model that assumesthat the

    presence

    of cues

    (sensory inputs)

    linked to

    past

    consumption

    ffectshabit

    ormation).

    37 See

    Haiyan

    Shui and

    Lawrence

    M.

    Ausubel,

    Time

    nconsistency

    n

    the CreditCardMar-

    ket

    1,

    27-28

    (14th

    Annual

    Utah

    Winter

    Finance

    Conference,

    May 2004),

    online at

    http://

    papers.ssrn.com/sol3/papers?.cfm?abstract_id=586622

    visited

    Jan

    17,

    2006)

    (explaining

    hat a

    hyperbolic

    model

    s

    necessary

    o

    explain

    consumerbehavior

    n

    the creditcard

    market).

    38

    See DrazenPrelec and

    George

    Loewenstein,

    TheRed

    and

    the

    Black:Mental

    Accounting

    of Savings

    and

    Debt,

    17

    Marketing

    Sci

    4,

    23

    (1998) (describing

    mental methods

    includingpro-

    spective

    accounting

    nd

    decoupling

    hatallow consumers

    o

    enjoy acquisitions

    t the moment

    of

    purchase

    with

    a

    credit

    card without

    considering

    he

    unpleasantness

    f

    paying

    their

    credit

    card

    bill when t comes

    due).

    39

    Gerald

    Dworkin,

    Paternalism,

    dward

    N.

    Zalta,

    ed,

    The

    StanfordEncyclopedia

    f

    Phi-

    losophy 2006),

    online at

    http://plato.stanford.edu/entries/paternalism

    visited

    Jan

    17,

    2006).

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    102

    The

    University

    f Chicago

    Law Review

    [73:87

    system

    likes

    and

    if

    the

    intervention

    creates

    more

    liking

    than the

    per-

    son would achieve on his own or with market-supplied

    elp.40

    Ideally,

    such

    paternalism

    would

    be "libertarian"n the sense

    that

    it would

    only

    intervene

    n

    choice

    when

    some

    kind of

    regulation

    s

    nec-

    essary

    (for

    example,setting

    a

    default),4'

    nd

    would be

    "asymmetric"

    n

    the sense

    that little harm would be done to

    people

    whose

    wanting

    and

    liking systems arewell-synched.42

    Paternalism ould take

    two

    mild

    forms,

    icensing

    and

    dramatizing.

    "Licensing"

    s

    checking

    whether

    wanting

    and

    liking

    are

    sufficiently yn-

    chronized o

    permit

    a

    person

    to make choices on his own

    (presumably

    in a

    particular

    domain).

    "Dramatizing"

    s

    using

    mechanisms

    o remind

    the

    wanting ystem,

    at the time of

    choice,

    about

    iking

    that

    may

    be

    over-

    looked or

    missynchronized

    ith

    wanting.

    A.

    Licensing

    Driving

    tests

    provide

    a

    model for how

    licensingmight

    occur,

    as a

    way

    to

    certify

    sufficient education of the

    wanting

    system.

    Because

    adolescents

    develop

    the

    hand-eye

    coordinationand

    patience

    to drive

    safely

    at different

    ages,

    and

    learning

    to drive takes time

    and

    supervi-

    sion,

    the current

    policy

    makes sense:

    prohibit driving

    by

    all

    children

    up to a certain

    age;43

    issue learner'spermitsthat allow driving only

    when

    a

    supervising

    adult is

    present

    (so

    the learners can

    learn);

    then

    force

    would-be drivers

    to

    pass

    written and

    physical

    driving

    tests,

    pref-

    erably

    with

    periodic

    retesting

    and

    other constraints

    (such

    as license

    suspension

    after

    accidents).

    One can

    imagine

    a "credit-card

    ermit"

    test that

    is

    conceptually

    similar o a

    driving

    est.Treata

    creditcardas a

    piece

    of

    equipment

    hat

    40

    A

    shadow

    s

    always

    cast

    on

    this

    type

    of

    analysisby

    the

    naggingquestion,

    "How

    can we

    be so sure thattheywon't ike it?"Thereare twocentralproblems: slippery lope,andcapture.

    The

    slippery

    lope

    argument

    s

    that

    interfering

    with

    OCD

    patients

    might

    make

    it

    legally

    or

    po-

    litically

    easier

    for

    more

    interference

    n

    similar

    behaviors hat are less

    scientifically rounded

    as

    disorders.The

    capture

    concern

    s that

    paternalistic

    policies

    will be

    guided

    or

    shaped

    (in

    their

    detail)

    by

    special

    interestswho

    either

    profit

    from

    interference

    for example,

    prohibitingprice

    advertising

    or

    eyeglasses)

    or

    who want to

    "saveothers"

    for

    example, eligious anatics).

    A

    full

    analysis

    of

    any

    policy

    should,

    of

    course,

    anticipate

    both

    slippery lope

    escalationand

    capture.

    t is

    too muchto ask

    at this

    early

    stage,

    however,

    when

    detailsof even a

    singlepolicy

    are

    speculative,

    to

    anticipate

    hese

    problems

    and

    respond

    o

    them,

    at least

    in

    this short

    Essay.

    41

    See

    generally

    RichardH.

    Thalerand

    Cass

    R.

    Sunstein,

    Libertarian

    aternalism,

    3

    Am

    Econ Rev

    175

    (2003);

    Cass

    R.

    Sunsteinand RichardH.

    Thaler,

    Libertarian

    aternalisms Not an

    Oxymoron,

    0 U Chi L Rev

    1159

    (2003).

    42

    See

    generally

    Colin

    Camerer,

    t

    al,

    Regulation

    or

    Conservatives:ehavioralEconomics

    and the Case

    or "Asymmetric

    aternalism,"

    51 U Pa L Rev 1211

    (2003).

    43

    Some states have

    a "farm icense"that allows

    very young

    children o drive

    in

    certain

    situations.For

    example,

    n

    North

    Dakota,

    fourteen-year-olds

    an

    drive farmvehicleswithin 150

    miles of

    their farm.License

    Classifications

    North

    Dakota

    Dept

    of

    Transportation005),

    online

    at

    http://www.state.nd.us/dot/dlclass.htmlvisited

    Jan

    17,

    2006).

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    2006]

    Neuroscience nd

    Paternalism

    103

    a user should

    know how to

    operate.

    Require potential

    borrowers to

    take a

    quiz

    with

    some

    basic

    questions,

    ike

    how

    rapidly

    nterest

    com-

    pounds

    and how

    long

    it

    takes to

    pay

    off a

    $1,000

    balance

    if

    minimum

    payments

    are made

    and

    interestaccumulates.

    erhaps

    have

    them

    speak

    with

    a

    counselor

    or with

    experienced

    adults,

    ome of whom

    used cards

    wisely

    and

    others

    who

    declared

    bankruptcy

    nd

    regret

    t. The test could

    also use

    the

    opportunity

    o educate

    potential

    borrowers bout

    basicbor-

    rowing

    rates

    and

    phenomena

    (much

    as

    driving

    ests remind

    people

    of

    traffic

    aws and some

    facts).

    The

    paternalism

    ere

    is

    asymmetric

    ecause

    if

    borrowers

    now these

    facts,

    he test can be

    designed

    o be

    easy

    to

    pass.

    B.

    Dramatizing

    Another

    mild

    paternalistic

    ntervention could be

    used

    in

    cases

    where one

    suspects

    the

    wanting system

    is

    not

    accounting

    for

    future

    liking

    or

    disliking

    correctly,

    by bringing

    uture

    liking

    and

    disliking

    viv-

    idly

    into

    the

    present.

    This is often done in "scared

    straight"

    ilms

    and

    talk-show

    nterventions hat show

    juvenile delinquents

    what

    prison

    is

    like.44 lcoholics

    Anonymous

    (AA) (one

    of

    the more successfultreat-

    ment

    programs)

    uses vivid testimonials

    by

    other

    AA

    members that

    remind

    sober alcoholics

    of

    all the

    crazy

    and destructive

    things

    that

    alcoholics do when they are drinking. Teenagers in high school

    programs

    can be made to

    carry

    around

    a

    baby

    who

    periodically

    simu-

    lates an

    infant's

    typical

    needs

    (crying,changing,nursing),

    o

    dramatize

    the constraint hat results

    from

    early parenthood.

    A

    combination

    of

    nutritional

    modeling

    and

    computer morphing

    of a

    body image

    could

    be used to show a

    person,

    for

    example,

    what

    they

    would look like

    in one

    year

    if

    they

    continue

    their

    steady

    diet

    of

    fast

    food

    or,

    oppositely,

    f

    they

    stuck with their

    personal

    trainer three

    times a week for a

    year.

    C. Calibration

    A

    strong paternalistic

    ntervention

    s to

    try

    to calibrate

    iking

    di-

    rectly,

    and then

    require

    choosers to consider

    their

    liking ratings

    when

    making

    choices

    (weak form)

    or

    to force

    them to choose the

    goods

    they

    liked

    most

    (strong

    form).

    Of

    course,

    the success

    of this

    technique

    depends

    on how well

    liking

    s measured.

    44

    Unfortunately,

    he available vidence

    suggests

    hese

    programs

    on'twork

    very

    well. See

    Surgeon

    General,

    YouthViolence:

    A

    Report of

    the

    Surgeon

    General

    95

    (2001),

    online at

    http://media.shs.net/ken/pdf/surgeon/SG.pdf

    visited

    Jan

    17,

    2006)

    (discussing

    esults that show

    shock

    programs

    uch as Scared

    Straight

    have

    equal

    or

    higher

    rearrest ates than

    exposure

    o

    no

    program

    t

    all).

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    104 The

    University f Chicago

    Law

    Review

    [73:87

    The

    kind of

    thing

    I

    have

    in

    mind is a blind

    taste

    test-tasters

    rate

    objects,

    and

    then

    automatically

    hoose the one

    they

    rated most

    highly.

    This could

    improve

    choice if

    there is

    a

    component

    of

    wanting,

    ike

    a

    brand

    name,

    that is not a

    genuine component

    of

    liking.

    But of

    course,

    if

    taste

    is not the

    only

    component

    of

    liking,

    then

    true

    liking

    is mis-

    measured

    by

    this

    kind of calibration.

    D.

    Delegating

    Choice

    When

    there are

    wanting-liking

    aps,

    it

    is

    possible

    that

    somebody

    else knows

    more

    about what

    you

    would

    really

    like

    than

    you

    do.

    Hav-

    ing

    the local

    wine

    connoisseurat

    dinner

    choose

    the wine

    for

    the

    table

    is a common and good practice.From our point of view,delegating

    choice is wise

    if

    the

    expert

    knows about

    typicalpatterns

    of

    mistakes--

    commonly

    wanted choices that

    are

    typically

    disliked later

    ("don't

    fill

    up

    on

    bread;

    save room for

    dessert").

    Allowing experts

    some

    say

    in

    a

    person's

    choice

    is

    a form

    of

    paternalism;

    n

    the weak

    form,

    the chooser

    is forced to hear an

    expert opinion

    (for

    example,

    a

    marriage

    coun-

    selor's

    report);

    n the

    strong

    form,

    the

    expert

    can overrule

    the

    choice

    or

    impose

    a

    choice.4"

    Arranged

    marriages

    re an

    interestingexample

    of

    various

    degrees

    of this sort of delegation.Ignoringexternalities ike familypride and

    business

    connectionscemented

    by

    marriage,

    he

    argument

    or

    arranging

    a

    marriage

    s that

    members of a

    prospective

    couple

    know less about

    what kind of

    people they

    will

    truly

    like

    in the

    long

    run than a match-

    maker

    (often

    a

    parent)

    does. The

    couple's

    judgments might

    naturally

    overweigh

    observableshort-run

    attributes

    for

    example,

    attractiveness

    and

    sex

    appeal)

    and

    underweigh

    ess observable

    ong-run

    attributes

    for

    example, idelity

    or

    good

    parenting),

    while wiser

    and older matchmak-

    ers

    weight

    these

    attributesmore

    accurately.

    Indeed,a smallpartof thisconcept s alreadybuilt ntolaw: n all but

    three

    American

    states,

    minimum

    marriageages

    are

    lower with

    parental

    consent than

    without

    consent.This

    gap

    in

    consent

    ages

    can be seen as

    a

    policy

    that

    permits

    marriage

    at

    age

    fifteen

    (in

    Utah,

    for

    example),

    but

    with

    a

    parental

    eto

    thatcan

    delay

    marriage

    ntil

    age

    eighteen.46

    E.

    Promoting

    Learning

    In

    the