European Perspectives on Behavioural Law and Economics (Economic Analysis of Law in European Legal Scholarship Book 2)

This anthology highlights the theoretical foundations as well as the various applications of Behavioural Law and Economics in European legal culture. By the same token, it fosters the dialogue between European and American Law and Economics scholars. The traditional neo-classical microeconomic theory explains human behaviour by using Rational Choice. According to this model, people tend to maximize the difference between expected utility and cost (ℓ́ℓexpected utility theoryℓ́ℓ). This theory includes three assumptions: (1) unbounded rationality, (2) unbounded self-interest, and (3) unbounded willpower. Behavioural Economics questions these assumptions and endeavours to render economic analysis more realistic by underpinning it with psychological insights. In recent years, the influence of Behavioural Economics on the Economic Analysis of Law has gained momentum. Behavioural Law and Economics generates a better theoretical understanding of legal phenomena and offers a multitude of applications in legislation and legal adjudication. This volume is testament to the growing and thriving Law and Economics movement in Europe. The European Law and Economics community has steadily grown and the yearly Law and Economics Conference at the law faculty of the University of Lucerne has successfully become a guiding star in the vast sky of Law and Economics This anthology highlights the theoretical foundations as well as the various applications of Behavioural Law and Economics in European legal culture. By the same token, it fosters the dialogue between European and American Law and Economics scholars. The traditional neo-classical microeconomic theory explains human behaviour by using Rational Choice. According to this model, people tend to maximize the difference between expected utility and cost (ĺlexpected utility theoryĺl). This theory includes three assumptions: (1) unbounded rationality, (2) unbounded self-interest, and (3) unbounded willpower. Behavioural Economics questions these assumptions and endeavours to render economic analysis more realistic by underpinning it with psychological insights. In recent years, the influence of Behavioural Economics on the Economic Analysis of Law has gained momentum. Behavioural Law and Economics generates a better theoretical understanding of legal phenomena and offers a multitude of applications in legislation and legal adjudication. This volume is testament to the growing and thriving Law and Economics movement in Europe. The European Law and Economics community has steadily grown and the yearly Law and Economics Conference at the law faculty of the University of Lucerne has successfully become a guiding star in the vast sky of Law and Economics Front Matter....Pages i-xv Front Matter....Pages 1-1 European and American Perspectives on Behavioural Law and Economics....Pages 3-16 The Next Generation of Behavioural Law and Economics....Pages 17-29 From Rational Choice to Behavioural Economics....Pages 31-48 Front Matter....Pages 49-49 Why Do We Need Responsive Regulation and Behavioural Research in EU Internal Market Law?....Pages 51-69 Can EU Consumer Law Benefit From Behavioural Insights?....Pages 71-106 Buttons, Boxes, Ticks, and Trust....Pages 107-123 Loss Aversion, Omission Bias and the Civil Standard of Proof....Pages 125-145 How Role and Framing Influence Litigants’ Perception of Civil Procedure....Pages 147-157 Investment Suitability Requirements in the Light of Behavioural Findings....Pages 159-192 Retail Investors and Disclosure Requirements....Pages 193-209 Behavioural Antitrust....Pages 211-242 New York Times v. Sullivan in European Context....Pages 243-267 Back Matter....Pages 269-271