How We Contradict Ourselves: The Case of John Cochrane—Gliding and Behavioral Economics

Abstract

John Cochrane, a leading economist, has consistently expressed a skeptical view toward behavioral economics and libertarian-paternalism. Specifically, he has consistently voiced his disagreement with the premise of “protecting” people from their own choices. However, in his hobby of piloting gliders, he has strongly argued that pilots will make behavioral errors. Indeed, he notes that pilots can be tempted to make unsafe decisions and has argued for specific rules to help prevent pilot error. In this article, we examine this contradiction. In doing so, it provides an interesting case study of how our beliefs in one system can be quite different in another. JEL Classifications: B31, D91, G40