ABSTRACT
Behavioral economics is one of the most significant developments in economics over the past thirty-six years. The field combines economics and psychology to produce a body of evidence that personal choice behavior departs from that predicted by neoclassical economics in a number of decision-making situations. This chapter first provides a brief history of the economics of irrational behavior and describe the research program of modern behavioral economics. Secondly, it then describes the major categories of cognitive biases documented in the behavioral economics literature. Thirdly, the chapter evaluates the robustness of those findings and their appropriateness for policy implementation in light of a variety of theoretical, experimental, and empirical critiques. It then discusses the incorporation of behavioral economics into the legal academy and after into policy discourse. Finally, analyzes the present appeal and plans of behavioral law and economics in the legal academy.
