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Research Handbook on Behavioral Law and Economics

Edited by Joshua C. Teitelbaum, Georgetown University Law Center and Kathryn Zeiler, Boston University School of Law, US
The field of behavioral economics has contributed greatly to our understanding of human decision making by refining neoclassical assumptions and developing models that account for psychological, cognitive and emotional forces. The field’s insights have important implications for law. This Research Handbook offers a variety of perspectives from renowned experts on a wide-ranging set of topics including punishment, finance, tort law, happiness, and the application of experimental literatures to law. It also includes analyses of conceptual foundations, cautions, limitations and proposals for ways forward.
Two volume set
Extent: c 568 pp
Hardback Price: $315.00 Web: $283.50
Publication Date: March 2018
ISBN: 978 1 84980 567 4
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  • Economics and Finance
  • Law and Economics
  • Law - Academic
  • Law and Economics
The field of behavioral economics has contributed greatly to our understanding of human decision making by refining neoclassical assumptions and developing models that account for psychological, cognitive and emotional forces. The field’s insights have important implications for law. This Research Handbook offers a variety of perspectives from renowned experts on a wide-ranging set of topics including punishment, finance, tort law, happiness, and the application of experimental literatures to law. It also includes analyses of conceptual foundations, cautions, limitations and proposals for ways forward.

The leading scholars of law, economics, and psychology featured in this Handbook use their insights to synthesize and contribute to the extant research at the intersection of behavioral economics and key areas of law, and to demonstrate methods for effective original research. With synthetic literature reviews and original research, conceptual overviews and critical perspectives, as well as topic-specific chapters, it provides a strong overview of this burgeoning field.

Law and economics scholars, behavioral law scholars, and behavioral economists and psychologists dealing with law, judgement and decision making will appreciate this Handbook’s dedication to applicable research, and judges, lawmakers, policy advocates and regulators will note its important practical implications for law and public policy.
‘In order use law to improve social welfare, scholars and policy makers need to be able to predict how people will respond to the legal change. To do so, they must understand when and how decisions are affects by systematic biases and heuristics, including how people respond to changes in either the legal or institutional environment. In this path-breaking volume, Professors Teitelbaum and Zeiler have assembled leading scholars from a variety of disciplines to enrich our understanding of human decision-making and analyze the implications of behavioral analysis for a wide range of legal issues, including antitrust, consumer finance, criminal law, torts, and property. This book will be enormously valuable for students, scholars and policy makers.’
– Jennifer Arlen, New York University School of Law, US

‘Behavioral law and economics is ascending. Teitelbaum and Zeiler, leaders in this emerging field, have put together an indispensable volume, including helpful literature reviews, new findings and critically important methodological discussions. These contributions are mandatory reading for researchers in the field and, more importantly, for policymakers that move, sometimes too quickly, to translate the research into law.’
– Oren Bar-Gill, Harvard Law School, US

‘This breathtaking volume on behavioral law and economics testifies to the field’s depth, breadth, and impact. Professors Zeiler and Teitlebaum have gathered a veritable ‘who’s who’ of leading thinkers and researchers who variously define, defend, extend, and critique the field. For the uninitiated, this volume provides a valuable introduction to behavioral law and economics; for scholars in the field, this is truly indispensable reading.’
– Chris Guthrie, Vanderbilt Law School, US

‘What does behavioral economics have on offer for the law? This Research Handbook forcefully cautions against the simplistic response: realism. For well-selected subfields of law, like antitrust, punishment or torts, it demonstrates the power of taking motivation and cognition seriously. But this requires mastering the emerging behavioral theory, and carefully gauging the facetted empirical evidence. The reader is guided towards the relevant literatures in economics and psychology, and learns how to read them. This Research Handbook will help lawyers make a most timely behavioral turn.’
– Christoph Engel, Max Planck Institute for Research on Collective Goods, Germany

Contributors include: S. Agarwal, A. al-Nowaihi, B.W. Ambrose, J. Baron, M. Bos, G. Charness, T. Chorvat, G. DeAngelo, S. Dhami, B. Ho, P.H. Huang, D. Huffman, O.D. Jones, C.M. Landeo, B. Luppi, K. McCabe, G. Mitchell, F. Parisi, S. Payne Carter, P.M. Skiba, A. Stein, T. Wilkinson-Ryan, E. Xiao, K. Zeiler
Contents:

Introduction, Joshua C. Teitelbaum and Kathryn Zeiler

PART I Foundations
1. Conceptual Foundations: A Bird’s-Eye View
Jonathan Baron and Tess Wilkinson-Ryan

2. Behavioral Probability
Alex Stein

PART II Antitrust and Consumer Finance
3. Exclusionary Vertical Restraints and Antitrust: Experimental Law and Economics Contributions
Claudia M. Landeo

4. Balancing Act: New Evidence and a Discussion of the Theory on the Rationality and Behavioral Anomalies of Choice in Credit Markets
Marieke Bos, Susan Payne Carter and Paige Marta Skiba

5. The Effect of Advertising on Home Equity Credit Choices
Sumit Agarwal and Brent W. Ambrose

PART III Crime and Punishment
6. Punishment, Social Norms, and Cooperation
Erte Xiao

7. Prospect Theory, Crime and Punishment
Ali al-Nowaihi and Sanjit Dhami

PART IV Torts
8. Behavioral Models in Tort Law
Barbara Luppi, Reggio Emilia and Francesco Parisi

9. Law and Economics and Tort Litigation Institutions: Theory and Experiments
Claudia M. Landeo

PART V Happiness and Trust
10. Happiness 101 for Legal Scholars: Applying Happiness Research to Legal Policy, Ethics, Mindfulness, Negotiations, Legal Education, and Legal Practice
Peter H. Huang

11. Trust and the Law
Benjamin Ho and David B. Huffman

PART VI Experiments and Neuroeconomics
12. Law and Economics in the Laboratory
Gary Charness and Gregory DeAngelo

13. What Explains Observed Reluctance to Trade? A Comprehensive Literature Review
Kathryn Zeiler

14. Incentives, Choices, and Strategic Behavior: A Neuroeconomics Perspective for the Law
Terrence R. Chorvat and Kevin McCabe

PART VII Cautions and Ways Forward
15. The Price of Abstraction
Gregory Mitchell

16. Why Behavioral Economics Isn't Better, and How It Could Be
Owen D. Jones

Index