ECON-2006EG Study Guide - Quiz Guide: Coase Theorem, Debiasing, Normative Economics
7 Mar 2021
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This paper describes and assesses the current state of behavioral law and economics. Law and economics had a critical (though underrecognized) early point of contact with behavioral economics through the foundational debate in both fields over the coase theorem and the endowment effect. 2. 1 the coase theorem: this theorem posits that allocating legal rights to one party or another will not affect outcomes if transaction costs are sufficiently low. 2. 2 the endowment effect within law and economics: a central task of law and economics is to assess the desirability of actual and proposed legal rules. It is useful for purposes of behavioural law and economics analysis to view human actors as departing from traditional economic assumptions in three distinct ways: human actors exhibit: bounded rationality, bounded willpower, and, bounded self-interest. Perhaps the most elementary definition of the word. In the iat, individuals are asked to categorize words or pictures into four.
