This chapter delves into the productive combination of behavioral economics (BE), the foundation of Libertarian Paternalism, and the Capability Approach (CA). The argument exposes the potential for mutual fertilization and highlights how each framework can enrich the other. On the one hand, BE contributes to the CA by deepening the understanding of both internal and external conversion factors. Internally, BE’s recognition of rationality as encompassing both deliberative (S2) and automatic (S1) processes enhances the CA’s analysis of personal traits that shape decision-making. Externally, BE introduces the concept of choice architecture—the contextual features that influence decisions—as a critical environmental factor. On the other hand, the CA offers BE a more comprehensive account of human motivation. It extends beyond the self-regarding focus typical of BE, incorporating motivations that are oriented toward others and broader values. The integration of these complementary insights results in a more robust conceptualization of human agency. The new model combines the strengths of each while addressing their shortcomings.