Max R. P. Grossmann

Max R. P. Grossmann

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Max R. P. Grossmann

Welcome! I am Max, a doctoral student in economics at the University of Cologne, specializing in the behavioral underpinnings of political economy. I am on the 2024–2025 academic job market.

Knowledge and Freedom: Evidence on the Relationship Between Information and Paternalism

Job Market Paper

I run simple experiments to see how a decision-maker's knowledge affects the freedom others give them. If people know what they're doing, others interfere less with their choices. A safe option is more likely to be imposed. Policymakers understand that decision-maker mistakes can work in their favor.
#paternalism #experiment #microtheory

Expand full abstract

When is autonomy granted to a decision-maker based on their knowledge, and if no autonomy is granted, what form will the intervention take? A parsimonious theory shows how policymakers can exploit decision-maker mistakes and use them as a justification for intervention. In two experiments, policymakers (“Choice Architects”) can intervene in a choice faced by a decision-maker. We vary the amount of knowledge decision-makers possess about the choice. Full decision-maker knowledge causes more than a 60\% reduction in intervention rates. Beliefs have a small, robust correlation with interventions on the intensive margin. Choice Architects disproportionately prefer to have decision-makers make informed decisions, even when they could exploit their ignorance, but interveners are less likely to provide information. As theory predicts, the same applies to Choice Architects who believe that decision-maker mistakes align with their own preference. When Choice Architects are informed about the decision-maker’s preference, this information is used to determine the imposed option. However, Choice Architects employ their own preference to a similar extent. A riskless option is causally more likely to be imposed, being correlated with but conceptually distinct from Choice Architects' own preference. This is a qualification to what has been termed “projective paternalism.”

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My research uses experimental and survey methods in public policy and political economy, addressing questions such as:

  • How do we create formal rules?
  • When do we respect others' choices?
  • How do the mental models of policymakers manifest in policy?
Curriculum Vitae

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Research

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Experience

Currently, I manage the Cologne Laboratory for Economic Research, one of the largest experimental economics laboratories. I was an Oskar Morgenstern Fellow at the Mercatus Center at George Mason University.

Technology

I developed otree_slider and alter_ego. I am an expert programmer and keen user of open-source software.

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