Abstract
Empirical and experimental evidence shows that individuals exhibit behavioral biases in their decision-making processes that depart from the full rationality paradigm. This paper discusses the effectiveness of alternative debiasing strategies, designed to induce socially preferable outcomes. Following Jolls, C. and Sunstein, C.R. (2006). Debiasing through law. J. Leg. Stud. 35: 199–242, this paper examines legal strategies that aim at “debiasing through law”, attempting to reduce or eliminate boundedly rational behavior. Alternatively, policymakers can implement “insulating” legal strategies that separate the outcome from the biased behavior, without attempting to eradicate behavioral biases from the decision-making process. This paper compares these strategies in many areas, such as tort law, consumer safety law, and property law.
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Articles in the same Issue
- Frontmatter
- Article
- The Impact of Behavioral Economics on the Law: Introduction
- Special Issue Articles
- The Paternalistic Turn in Behavioral Law and Economics: A Critique
- Behavioral Contract Law
- The Limits of Behavioral Economics in Tort Law
- Behavioral Economics in Plea-Bargain Decision-Making: Beyond the Shadow-of-Trial Model
- Behavioral Economics and Court Decision-Making
- The Role of Bias in Economic Models of Law
- Behavioral Biases and the Law
- The Evolutionary Force of Behavioral Economics in Law
Articles in the same Issue
- Frontmatter
- Article
- The Impact of Behavioral Economics on the Law: Introduction
- Special Issue Articles
- The Paternalistic Turn in Behavioral Law and Economics: A Critique
- Behavioral Contract Law
- The Limits of Behavioral Economics in Tort Law
- Behavioral Economics in Plea-Bargain Decision-Making: Beyond the Shadow-of-Trial Model
- Behavioral Economics and Court Decision-Making
- The Role of Bias in Economic Models of Law
- Behavioral Biases and the Law
- The Evolutionary Force of Behavioral Economics in Law