Changing Behaviour by Adding an Option

ABSTRACT Adding an option is a neglected mechanism for bringing about behavioural change. This mechanism is distinct from nudges, which are changes in the choice architecture, and instead makes it possible to pursue republican paternalism, a unique form of paternalism in which choices are changed by expanding people's set of options. I argue that this is truly a form of paternalism (albeit a relatively soft one) and illustrate some of its manifestations in public policy, specifically public options and market creation. Furthermore, I compare it with libertarian paternalism on several dimensions, namely respect for individuals' agency, effectiveness, and efficiency. Finally, I consider whether policymakers have the necessary knowledge to successfully change behaviour by adding options. Given that adding an option has key advantages over nudges in most if not all of these dimensions, it should be considered indispensable in the behavioural policymaker's toolbox.