Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

Exercise 13

''Behavioral economics justifies intervention in the market by a paternalistic government.'' Explain the pros and cons of this view. What other market failures were identified in the book where government intervention might have been called for? Is the argument for intervening to solve behavioral problems stronger or weaker than the argument for intervening to solve these other market failures?