Status and Application of Behavioral Economics in Economic Analysis of Law

Document Type : Original Article

Authors

1 (Assistant Professor of Law, Shahid Beheshti University)

2 ( LLM in Economic Law,Shahid Beheshti University)

Abstract
Law is a behavioral system that seeks to shape human behavior. Behavioral economics combines economics and cognitive psychology and produces research results indicating, in general, that individuals’ choices in various decision-making circumstances may depart from what traditional neoclassical economics predicts due to different psychological biases.This research seeks to address the applications and challenges of behavioral law and economics through introducing behavioral economics and its place in law and economics using the documentary method. Then it presents a broad vision of how increased attention to insights about actual human behavior may improve economic analysis of law.
Behavioral law and economics, due to its attention to the actual behavior of people, claims that it also provides more realistic results and more appropriate solutions that can be used as powerful tools by lawyers, legislators, judges, policymakers, and other stakeholders to regulate the behavior of the people, and along with good governance, bring society closer to the collective good. On the contrary, its critics have challenged the methodology of this field, expressing remarkable doubts about its application in legal policymaking.

Keywords


 
1.      Books
§  Baker, Tom, and Peter Siegelman, Behavioral Economics and Insurance Law, In: Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014, pp. 491-517.
 
§  Eisenberg, Melvin A., Behavioral Economics and Contract Law, In: Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014, pp. 438-464.
 
§  Halbersberg, Yoed, and Ehud Guttel, Behavioral Economics and Tort Law, In: Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014, pp. 405-437.
 
§  Harel, Alon, Behavioral Analysis of Criminal Law: A Survey, In: Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014, pp. 568-598.
 
§  Heinemann, Andreas, Behavioral Antirust: A More Realistic Approach to Competition Law, In: Mathis, K. European Perspectives on Behavioral Law and Economics, Switzerland: Springer International Publishing, 2015, pp. 211-242.
 
§  Kuenzler, Adrian, and Douglas A. Kysar, Environmental Law, In: Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014, pp. 748-782.
 
§  Lewinsohn-Zamir, Daphna, Behavioral Law and Economics of Property Law: Achievements and Challenges, In: Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014, pp. 377-404.
 
§  Ulen, Thomas S., The Importance of Behavioral Law, In: Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014, pp. 93-124.
 
§  Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014.
 
§  Zamir, Eyal, and Doron Teichman, Behavioral Law and Economics, Oxford University Press, 2018.
2.      Articles
§  Hacker, Philipp, “Overcoming the Knowledge Problem in Behavioral Law and Economics: Uncertainty, Decision Theory and Autonomy”, SSRN, 2015,  available at: https://ssrn.com/abstract=2632022. 
 
§  Jolls, Christine, Cass. R, Sunstein, and Richard Thaler, “A Behavioural Approach to Law and Economics”, Stanford Law Review, Vol. 50, 1998, pp. 1471-1550.
 
§  Ko, Haksoo, “Behavioral Law and Economics”, Encyclopedia of Law and Economics, Springer Science and Business Media New York, 2014, pp. 1-4.
 
§  Mullainathan, Sendhil, and Richard H. Thaler, “Behavioral Economics”, National Bureau of Economic Research Working Paper Series, Working Paper 7948, 2000,  available at: http://www.nber.org/papers/w7948.
 
§  Sheffrin, Steven M., “Behavioral Law and Economics Is Not Just a Refinement of Law and Economics”, OEconomia – History | Methodology | Philosophy, 7(3), 2017, pp. 331-352.
 
§  Wright, Joshua D, and Douglas H. Ginsburg, “Behavioral Law and Economics: its origins, fatal flaws, and implications for liberty”, Northwestern University Law Review, Vol.106, No.3, 2012, pp. 1033-1090.
3.      Online resources
§  “Criticisms of Behavioral Economcis”. Economics Online for students of economics, available at: https://www.economicsonline.co.uk/Behavioural_economics/Criticisms_of_behavioural_economics.html., (last visited 04/06/2020).
 
§  Gilles, Rob, “Limitations of Behavioral Economics”, The Rational Economy: Website of Professor Rob Gilles, (2009), available at: http://www.relationaleconomy.net/2009/08/limitations-of-behavioral-economics/, (last visited 04/06/2020).
 
English List of Resources
A. Farsi
1.      Books
§  Cartwright, Edward, Behavioral Economics, Translated by Ghahreman Abdoli and SeyedHossein Mirshojaeian Hosseini, Tehran: Donya-e-Eqtesad, 2017.
2.      Articles
§  Rahbar, Farhad, and Meysam Amiri, “Behavioral Economics and Public Policy”, Journal of Planning and Budget, No. 19 (4), 2014.
3.      Interviews
§  Abdi, Sajad, “Behavioral economics from theory to application in an interview with Dr. Mehdi Feizi”, Tehran: Journal of Urban Economics and Planing, No. 34, 2017.
 
B. English
1.      Books
§  Baker, Tom, and Peter Siegelman, Behavioral Economics and Insurance Law, In: Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014, pp. 491-517.
§  Eisenberg, Melvin A., Behavioral Economics and Contract Law, In: Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014, pp. 438-464.
 
§  Halbersberg, Yoed, and Ehud Guttel, Behavioral Economics and Tort Law, In: Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014, pp. 405-437.
 
§  Harel, Alon, Behavioral Analysis of Criminal Law: A Survey, In: Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014, pp. 568-598.
 
§  Heinemann, Andreas, Behavioral Antirust: A More Realistic Approach to Competition Law, In: Mathis, K. European Perspectives on Behavioral Law and Economics, Switzerland: Springer International Publishing, 2015, pp. 211-242.
 
§  Kuenzler, Adrian, and Douglas A. Kysar, Environmental Law, In: Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014, pp. 748-782.
 
§  Lewinsohn-Zamir, Daphna, Behavioral Law and Economics of Property Law: Achievements and Challenges, In: Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014, pp. 377-404.
 
§  Ulen, Thomas S., The Importance of Behavioral Law, In: Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014, pp. 93-124.
 
§  Zamir, Eyal, and Doron Teichman, The Oxford Handbook of Behavioral Economics and the Law, Oxford University Press, 2014.
 
§  Zamir, Eyal, and Doron Teichman, Behavioral Law and Economics, Oxford University Press, 2018.
2.      Articles
§  Hacker, Philipp, “Overcoming the Knowledge Problem in Behavioral Law and Economics: Uncertainty, Decision Theory and Autonomy”, SSRN, 2015,  available at: https://ssrn.com/abstract=2632022. 
 
§  Jolls, Christine, Cass. R, Sunstein, and Richard Thaler, “A Behavioural Approach to Law and Economics”, Stanford Law Review, Vol. 50, 1998, pp. 1471-1550.
 
§  Ko, Haksoo, “Behavioral Law and Economics”, Encyclopedia of Law and Economics, Springer Science and Business Media New York, 2014, pp. 1-4.
 
§  Mullainathan, Sendhil, and Richard H. Thaler, “Behavioral Economics”, National Bureau of Economic Research Working Paper Series, Working Paper 7948, 2000,  available at: http://www.nber.org/papers/w7948.
§  Rahbar, Farhad, and Meysam Amiri, “Behavioral Economics and Public Policy”, Journal of Planning and Budget, No. 19 (4), 2014. [In Persian]
 
§  Sheffrin, Steven M., “Behavioral Law and Economics Is Not Just a Refinement of Law and Economics”, OEconomia – History | Methodology | Philosophy, 7(3), 2017, pp. 331-352.
 
§  Wright, Joshua D, and Douglas H. Ginsburg, “Behavioral Law and Economics: its origins, fatal flaws, and implications for liberty”, Northwestern University Law Review, Vol.106, No.3, 2012, pp. 1033-1090.
3.      Online Resources
§  “Criticisms of Behavioral Economcis”. Economics Online for students of economics, available at: https://www.economicsonline.co.uk/Behavioural_economics/Criticisms_of_behavioural_economics.html., (last visited 04/06/2020).
 
§  Gilles, Rob, “Limitations of Behavioral Economics”, The Rational Economy: Website of Professor Rob Gilles, (2009), available at: http://www.relationaleconomy.net/2009/08/limitations-of-behavioral-economics/, (last visited 04/06/2020).