Economic theory has had a large impact on legal thinking. Behavioral Economics seeks to identify predictable patterns of behavior that do not fit into the neo-classical rational-choice paradigm; its ultimate goal is to improve the predictive capacities of social science. This seminar will explore Behavioral research on framing effects, loss aversion, risk compensation, mental accounting, time-inconsistent preferences, self-serving biases, perceptions of fairness, and happiness. Several of these behavioral patterns can be used to suggest that, in certain situations, peoples' autonomous choices may not result in outcomes that are best for them even under their own theories of "best." Accordingly, we will also discuss potential policy responses and the appropriate limits of paternalism.
Williams, Sean H.