Behavioral Law and Economics (Cambridge Series on Judgment and Decision Making) [Paperback]

Cass R. Sunstein (Editor)

Book Description

ISBN-10: 0521667437 | ISBN-13: 978-0521667432 | Publication Date: March 28, 2000

This exciting volume marks the birth of a new field--a field that studies law with reference to an accurate, rather than a crude, understanding of human behavior. Behavioral Law and Economics presents new findings in cognitive psychology and behavioral economics, which show that people are frequently both unselfish and over-optimistic; that people have limited willpower and limited self-control; and that people are "boundedly" rational, in the sense that they have limited information-processing powers, and frequently rely on mental short-cuts and rules of thumb. Understanding this kind of human behavior has large-scale implications for the analysis of law, in areas including environmental protection, taxation and tax compliance, constitutional law, voting behavior, punitive damages for civil rights violations, labor negotiations and strikes, and corporate finance. Behavioral Law and Economics offers many new insights into these fields and suggestions for legal reform. With a better knowledge of human behavior, it is possible to predict the actual effects of law, to see how law might actually promote society's goals, and to reassess the questions of what law should be doing.

Editorial Reviews

Review

"Human psychology is complicated. The law and economics paradigm traditionally has treated it as simple. This volume splendidly marshals leading works by scholars whoin pursuit of realism--seek to add complexity to the traditional paradigm. A significant landmark in the field of law and social science." Robert C. Ellickson, Walter E. Meyer Professor of Property and Urban Law, Yale Law School

"...this is a valuable contribution to the study of law and courts....This compilation serves to focus discussion on a set of particularly important theoretical challenges to the standard economic model. Thus, this book belongs on the shelf of any student of the law and courts who advocates or challenges the rational choice model of decision making on the courts." Paul J. Wahlbeck, The Law & Politics Book Review

"...the essays in this book provide a clear and vivid introduction into a research program that promises to illuminate our understanding of how law influences behavior." New York Law Journal

Book Description

This exciting volume marks the birth of a new field--a field that studies law with reference to an accurate, rather than a crude, understanding of human behavior. Behavioral Law and Economics presents new findings in cognitive psychology and behavioral economics, which show that people are frequently both unselfish and over-optimistic; that people have limited willpower and limited self-control; and that people are "boundedly" rational, in the sense that they have limited information-processing powers, and frequently rely on mental short-cuts and rules of thumb. Understanding this kind of human behavior has large-scale implications for the analysis of law, in areas including environmental protection, taxation and tax compliance, constitutional law, voting behavior, punitive damages for civil rights violations, labor negotiations and strikes, and corporate finance. Behavior Law and Economics offers many new insights into these fields and suggestions for legal reform. With a better knowledge of human behavior, it is possible to predict the actual effects of law, to see how law might actually promote society's goals, and to reassess the questions of what law should be doing.

Product Details

• Paperback: 448 pages
• Publisher: Cambridge University Press (March 28, 2000)
• Language: English
• ISBN-10: 0521667437
• ISBN-13: 978-0521667432
• Product Dimensions: 9.1 x 6 x 0.9 inches
• Shipping Weight: 1.5 pounds (View shipping rates and policies)
• Average Customer Review: 5.0 out of 5 stars  See all reviews (1 customer review)
• Amazon Best Sellers Rank: #137,053 in Books (See Top 100 in Books)

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29 of 29 people found the following review helpful:

5.0 out of 5 stars Behavioral Economics Comes of Age, August 23, 2001

By 

Herbert Gintis (Northampton, MA USA) - See all my reviews

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This review is from: Behavioral Law and Economics (Cambridge Series on Judgment and Decision Making) (Paperback)

There are several prominent legal scholars who work in the interface of social theory and law, but Cass Sunstein is, to my mind, one of the very few really innovative thinkers with full control of social theory. This edited collection shows that the approach he has been working on for the past several years, has finally come of age.

The first synthesis of law and economics took place several decades ago, based on the seminal work of Nobel prize winning Chicago economist Ronald Coase. The synthesis was based on the so-called "rational actor model" (often called homo Economicus) that can be derived from certain axiomatic, mathematics-like principles, based on the notion of self-interest and utility maximization. This was a major breakthrough in social theory and policy.

But the "rational actor model" has been shown to be systematically violated by real human beings, and behavioral economics arose to ammend the "rational actor model" to fit the reality. It's not that people are irrational, but rather the concept of rationality used in the traditional theory is seriously wanting. If you're interested in this larger backdrop to the present book, there is a marvelous new book on the subject edited by its creators, Daniel Kahneman and Amos Tversky, called "Choices, Values, and Frames."

The introductory chapters of Behavioral Law and Economics are refreshingly clear and free of jargon. These are followed by some of the most important articles that have been written on the topic over the past several years.

Behavioral law and economics is not just some academic field. It is absolutely, front and center, critical to political philosophy and the policy sciences in general. This book is for both expert and layperson alike---a real tour de force.