"Human psychology is complicated. The law and economics paradigm traditionally has treated it as simple. This volume splendidly marshals leading works by scholars whoin pursuit of realism--seek to add complexity to the traditional paradigm. A significant landmark in the field of law and social science." Robert C. Ellickson, Walter E. Meyer Professor of Property and Urban Law, Yale Law School

• Introduction Cass R. Sunstein; Part I. Overviews and Prospects: 1. A behavioral approach to law and economics Christine Jolls, Cass R. Sunstein and Richard Thaler; Part II. Heuristics and Biases: Shortcuts, Errors and Legal Decisions: 2. Context-dependence in legal decision making Mark Kelman, Yuval Rottenstreich and Amos Tversky; 3. A positive psychological theory of judging in hindsight Jeffrey J. Rachlinski; 4. Behavioral economics, contract formation, and contract law Russell Korobkin; 5. Organized illusions: a behavioral theory of why corporations mislead stock market investors (and cause other social harms) Donald C. Langevoort; 6. Reluctance to vaccinate: omission bias and ambiguity Ilana Ritov and Jonathan Baron; 7. Second-order decisions Cass R. Sunstein and Edna Ullmann-Margalit; Part III. Valuation: Values and Dollars in the Legal System: 8. Experimental tests of the endowment effect and the cause theorem Daniel J. Kahneman, Jack L. Knetsch and Richard H. Thaler; 9. Assessing punitive damages (with notes on cognition and valuation in law) Cass R. Sunstein, Daniel J. Kahneman and David Schkade; 10. Framing the jury: cognitive perspective on pain and suffering award Edward J. McCaffery, Daniel J. Kahneman and Matthew L. Spitzer; 11. Behavioral economic analysis of redistributive legal rules Christine Jolls; 12. Do parties to nuisance cases bargain after judgment? A glimpse inside the cathedral Ward Fransworth; Part IV. The Demand for Law: Why Law Is As It Is: 13. Some implications of cognitive psychology for risk regulation Roger G. Noll and James E. Krier; 14. Explaining bargaining impasse: the role of self-serving biases Linda Babcock and George Loewenstein; 15. Controlling availability cascades Timur Kuran and Cass R. Sunstein; 16. Cognitive theory and tax Edward J. McCaffery.