Legitimacy of Behavioral Public Policy and Trust in Public Institutions

While the attempts of the literature to determine the success of behavioral public policy have primarily focused on measuring its effectiveness, this chapter emphasizes the importance of a different dimension of success: legitimacy, defined in terms of citizens’ approval and support. After briefly reviewing the debate on the performance and effectiveness of behavioral interventions, largely centered on nudging, unintended consequences are analyzed to demonstrate that they can take various forms, ranging from counterproductive effects on intended outcomes to both desirable and undesirable effects on other outcomes. Regardless of whether nudges are effective or not in the short-term, they involve some degree of manipulation of citizens’ decisions, which may lead to unintended consequences in terms of legitimacy, undermining public support for such interventions and eroding trust in government. Ultimately, these adverse effects can compromise the effectiveness of public policy.