Research Handbook on Behavioral 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 Research 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 Research Handbook's dedication to applicable research, and judges, lawmakers, policy advocates and regulators will note its important practical implications for law and public policy.

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 Sanjit Dhami and Ali al-Nowaihi PART IV Torts 8. Behavioral Models in Tort Law Barbara Luppi 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 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 Neuroeconomic Perspective for the Law Terrence 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