Abstract
Abstract Kahneman and Tversky's ‘Prospect Theory’ paper famously demolishes expected utility theory as a predictive device. However, it presents deviations from that theory as ‘normatively unacceptable’ and argues that decision-makers would normally correct them when possible. In a later paper, Kahneman rejects a similar argument (the ‘discovered preference’ hypothesis) advanced by Plott. Later still, Kahneman endorses Sunstein and Thaler's ‘libertarian paternalism’, which aims to help people avoid deviating from their ‘true’ preferences. I report an email correspondence between Kahneman and me in which we debated whether his position on libertarian paternalism was consistent with his critique of Plott's hypothesis.
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