Prospect theory posits that people do not perceive outcomes as final states of wealth or welfare, but rather as gains or losses in relation to some reference point. People are generally loss averse: the disutility generated by a loss is greater than the utility produced by a commensurate gain. Loss aversion is related to such phenomena as the status quo and omission biases, the endowment effect, and escalation of commitment. The book systematically analyzes the relationships between loss aversion and the law.
In the past few decades, economic analysis of law has been challenged by a growing body of experimental and empirical studies that attest to prevalent and systematic deviations from the assumptions of economic rationality. While the findings on bounded rationality and heuristics and biases were initially perceived as antithetical to standard economic and legal-economic analysis, over time they have been largely integrated into mainstream economic analysis, including economic analysis of law. Moreover, the impact of behavioral insights has long since transcended purely economic analysis of law: in recent years, the behavioral movement has become one of the most influential developments in legal scholarship in general. Behavioral Law and Economics offers a state-of-the-art overview of the field. Eyal Zamir and Doron Teichman survey the entire body of psychological research that lies at the basis of behavioral analysis of law, and critically evaluate the core methodological questions of this area of research. Following this, the book discusses the fundamental normative questions stemming from the psychological findings on bounded rationality, and explores their implications for setting the law's goals and designing the means to attain them. The book then provides a systematic and critical examination of the contributions of behavioral studies to all major fields of law including: property, contracts, consumer protection, torts, corporate, securities regulation, antitrust, administrative, constitutional, international, criminal, and evidence law, as well as to the behavior of key players in the legal arena: litigants and judicial decision-makers.
Contrasting Approaches to Concepts of Forgiveness and Revenge
Author: Susie DiVietro,Jordan Kiper
This interdisciplinary, empirical and theoretical approach to forgiveness and revenge considers the roles of truth, restitution and ritual in the promotion of forgiveness and deterrence of revenge in multiple contexts.
The past twenty years have witnessed a surge in behavioral studies of law and law-related issues. These studies have challenged the application of the rational-choice model to legal analysis and introduced a more accurate and empirically grounded model of human behavior. This integration of economics, psychology, and law is breaking exciting new ground in legal theory and the social sciences, shedding a new light on age-old legal questions as well as cutting edge policy issues. The Oxford Handbook of Behavioral Economics and Law brings together leading scholars of law, psychology, and economics to provide an up-to-date and comprehensive analysis of this field of research, including its strengths and limitations as well as a forecast of its future development. Its 29 chapters organized in four parts. The first part provides a general overview of behavioral economics. The second part comprises four chapters introducing and criticizing the contribution of behavioral economics to legal theory. The third part discusses specific behavioral phenomena, their ramifications for legal policymaking, and their reflection in extant law. Finally, the fourth part analyzes the contribution of behavioral economics to fifteen legal spheres ranging from core doctrinal areas such as contracts, torts and property to areas such as taxation and antitrust policy.
Featuring more than 800 answers to questions of how the human mind and the science of psychology really work, this fascinating discussion gives readers the real facts of modern psychology in a fun, approachable way. Avoiding the entertainment fluff of pop psychology and the dryness of overly academic works, this exploration gives insight into the current science of the mind by answering questions questions such as What makes a marriage last? Why do toddlers have temper tantrums? and What are the benefits of getting older? In addition to the question-and-answer section, an overview looks at the psychology of money, sex, morality, and everyday living.
Grenzen der Entscheidung oder Eine Freundschaft, die unser Denken verändert hat
Author: Michael Lewis
Publisher: Campus Verlag
Category: BUSINESS & ECONOMICS
Lewis verknüpft die Biografien der beiden Psychologen Daniel Kahneman und Amos Tversky mit ihren Forschungsarbeiten und zeigt, wie aus ihren Arbeiten eine neue Wissenschaftsdisziplin, die Verhaltensökonomik, entstehen konnte.
'Economists have learned a great deal through the use of the optimising rationality paradigm (including quite a few things that ain't so). As the realization spreads that its usefulness has been pretty much exhausted, economists find themselves at long last turning to the study of how decisions are actually made. Cognitive economics is coming to the forefront. the two splendid volumes edited by Egidi and Rizzello not only collect the essential classics but also survey the present state of the field. the collection is especially valuable in its stress on the role of institutions in shaping what people learn (and what they retain) from experience. Cognitive economics carries the promise also of revitalising institutional economics.' - Axel Leijonhufvud, University of Trento, Italy This important collection examines the subject of cognitive economics - an interdisciplinary approach to the study of human problem solving, choice, decision making and change which explains economic transactions and the nature and evolution of organisations and institutions in an environment of structural uncertainty, scarcity and incentives.
Steffen Bieneck,Margit E. Oswald,Jorg Hupfeld-Heinemann
Author: Steffen Bieneck,Margit E. Oswald,Jorg Hupfeld-Heinemann
In recent years, research interest has increased both in the needs of punishment by the public and in the psychological processes underlying decisions on sentencing. This comprehensive look at the social psychology of punishment focuses on recent advances, and presents new findings based on the authors’ own empirical research. Chapters explore the application of social psychology and social cognitive theories to decision making in the context of punishments by judges and the punitiveness of laymen. The book also highlights the different legal systems in the UK, US and Europe, discussing how attitudes to punishment can change in the context of cultural and social development.
'Experimental analysis under controlled conditions provides a unique perspective on how people respond to legal rules and institutions. the Arlen-Talley volume is a superb collection of the seminal articles, assembled in a coherent way to help the reader understand and assess the potential of this body of research.' - Wallace E. Oates, University of Maryland, US