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E-raamat: Law, Psychology, and Morality: The Role of Loss Aversion

(Augusto Levi Professor of Commercial Law, Faculty of Law, Hebrew University of Jerusalem)
  • Formaat: 256 pages
  • Ilmumisaeg: 30-Oct-2014
  • Kirjastus: Oxford University Press Inc
  • Keel: eng
  • ISBN-13: 9780199972067
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  • Formaat: 256 pages
  • Ilmumisaeg: 30-Oct-2014
  • Kirjastus: Oxford University Press Inc
  • Keel: eng
  • ISBN-13: 9780199972067

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Kahneman and Tversky's Prospect Theory posits that people do not perceive outcomes as final states of wealth or welfare, but rather as gains or losses in relation to some reference point. People are generally loss averse, meaning that the disutility generated by a loss is greater than the utility produced by a commensurate gain. Loss aversion is related to psychological phenomena such as the status quo and omission biases, the endowment effect, and escalation of commitment.

Law, Psychology, and Morality: The Role of Loss Aversion systematically analyzes the complex relationships between loss aversion and the law weaving together insights from cognitive and social psychology, neuropsychology, behavioral economics, experimental legal studies, economic analysis of law, normative ethics, moral psychology, and comparative law. It discusses diverse legal issues in private and public law, national and international law, and substantive and procedural law. Eyal Zamir provides an overview of the psychological studies of loss aversion to examine its effect on human behavior in the contexts of particular interest to the law, while discussing the impact of the law on people's behavior through the framing of the choices they encounter. The book further highlights an intriguing compatibility between loss aversion and fundamental features of the law and various legal doctrines, while theorizing about the causes of this compatibility by drawing on insights from the
economic analysis of law and evolutionary psychology. The book points to the correlation between loss aversion, deontological and commonsense morality, and the law, while proposing many normative implications.

Arvustused

Eyal Zamir's book is an astonishing accomplishment of scholarship. It will be an indispensable reference in the discussion of psychology, morality and the law. * Daniel Kahneman, Senior Scholar; Eugene Higgins Professor of Psychology, Emeritus; and Professor of Psychology and Public Affairs, Emeritus, Woodrow Wilson School, Princeton University * An excellent and eye-opening book, packed with insights into law, policy, morality, and psychology. Loss aversion is one of the very few most important findings in the last decades of behavioral science. Zamir has produced the best treatment, by far, of its relevance to law. * Cass R. Sunstein, Robert Walmsley University Professor, Harvard University * If a behavioral trait is real and important, chances are the law knew it all along. But without interdisciplinary expertise, the law lacks a language. Doctrine does not establish the links between seemingly remote phenomena that happen to have a common behavioral cause. In his fascinating, thought provoking book, Eyal Zamir demonstrates how many legal institutions react to, exploit or mold the propensity to evaluate outcomes against a reference point, rather than 'objective' values. * Christoph Engel, Max-Planck-Institute for Research on Collective Goods, Bonn * Eyal Zamir masterfully analyzes and explains how the seminal research by Amos Tverksy and Daniel Kahneman on judgment and choice should affect our understanding of the way law has evolved and how legal rules should be rethought. Law, Psychology, and Morality is a must read for anyone who cares about the relationship between how we humans think and act and the type of rules we create to organize our societies. * Russell Korobkin, Richard C. Maxwell Professor of Law, UCLA *

Acknowledgments xi
Introduction xiii
I THE PSYCHOLOGY OF LOSS AVERSION
1 Loss Aversion: An Overview
3(52)
A Introduction
3(1)
B A Brief History
4(1)
C Prospect Theory
5(2)
D Reference Points
7(4)
1 General
7(2)
2 Multiple Reference Points
9(1)
3 Goals
10(1)
4 Generality of Reference-Dependence
11(1)
E Alternative Theories, Limitations, and Critique
11(2)
F Empirical Studies
13(2)
G Loss Aversion and Emotions
15(1)
H Related Phenomena
16(17)
1 Status Quo and Omission Biases
17(4)
2 Endowment Effect
21(8)
3 Sunk Costs and Escalation of Commitment
29(2)
4 Bounded Ethicality
31(2)
I Professional Decision-Making
33(4)
J Group Decision-Making
37(1)
K Debiasing Loss Aversion?
38(4)
L Evolutionary Roots and Neural Basis
42(4)
1 Evolutionary Roots
42(3)
2 Neural Basis
45(1)
M Impact on Other Disciplines
46(2)
N Conclusion
48(7)
II UNDERSTANDING HUMAN BEHAVIOR IN LEGAL CONTEXTS
2 Consumer Behavior
55(12)
A Introduction
55(1)
B Framing Prices and Other Attributes
56(3)
C Limited Availability
59(2)
D Escalation of Commitment
61(2)
E Lenient Return Policies and the Endowment Effect
63(2)
F Status Quo and Omission Biases
65(1)
G Conclusion
66(1)
3 The Market for Legal Services: Contingent Fees
67(16)
A Introduction
67(3)
B The Puzzle
70(2)
C Loss Aversion and Plaintiffs' Preferences
72(6)
D Loss Aversion and Defendants' Preferences
78(3)
E Conclusion
81(2)
4 Litigation and Settlement
83(16)
A Introduction
83(1)
B Standard Economic Analysis
84(1)
C Framing Litigation Outcomes and Risk Attitude
85(2)
D Settlement, Regret, and Loss Aversion
87(3)
E Default Effect and Alternative Dispute Resolution
90(2)
F A Note on Plea Bargains
92(4)
G Conclusion
96(3)
III FRAMING BY THE LAW
5 Legally Induced Reference Points
99(20)
A Introduction
99(2)
B Default Rules
101(8)
C Burden of Persuasion
109(3)
D Legal Reforms and Temporary Legislation
112(3)
E Conclusion
115(4)
IV LOSS AVERSION AND BASIC FEATURES OF THE LAW
6 Correspondence between Loss Aversion and the Law
119(48)
A Introduction
119(1)
B Private Law: Tort versus Unjust Enrichment
120(5)
C Contract Remedies: Expectation versus Disgorgement
125(8)
D Constitutional Property Law: Takings versus Givings
133(4)
E Criminal Law: Necessity and Bad Samaritan Laws
137(3)
1 Necessity
137(2)
2 Bad Samaritan Laws
139(1)
F Human Rights: Civil and Political versus Social and Economic
140(4)
G Civil Rights: Affirmative Action
144(5)
H Refugee and Immigration Law: Denying Entrance versus Expelling
149(4)
I Tax Law: Tax Exemptions and Tax Withholding
153(4)
1 Tax Exemptions versus Spending
154(2)
2 Tax Withholding
156(1)
J Evidence Law: Burden of Proof in Civil Litigation
157(5)
K Civil Procedure: Preliminary Injunctions
162(3)
L Conclusion
165(2)
7 Evolutionary Theories
167(10)
A Introduction
167(1)
B Efficiency-of-the-Common-Law Theories
168(3)
C Loss Aversion and the Plaintiffs' Role
171(3)
D Assessment and Conclusion
174(3)
8 Cognitive Psychology, Commonsense Morality, and the Law
177(26)
A Introduction
177(1)
B Deontology
178(4)
C Moderate Deontology and Commonsense Morality
182(7)
D Deontology, Commonsense Morality, and Loss Aversion
189(4)
E Commonsense Morality and Law
193(2)
F Moral and Evolutionary Psychology
195(4)
G Conclusion
199(4)
V NORMATIVE ANALYSIS
9 Loss Aversion: Normative Implications
203(28)
A Introduction
203(2)
B Preliminary Issues
205(7)
1 Loss Aversion Is Not Irrational Per Se
205(2)
2 The Limited Manipulability of Reference Points
207(5)
C Justifying Basic Features of Extant Law
212(3)
D Legal Policymaking
215(11)
1 Preventing Exploitation
216(3)
2 Reframing Choices
219(5)
3 Legal Reforms
224(2)
E Legal Decision-Makers' Loss Aversion
226(3)
F Conclusion
229(2)
Conclusion 231(4)
Author Index 235(12)
Index 247
Eyal Zamir is the Augusto Levi Professor of Commercial Law at the Hebrew University, where he served as Dean of the Faculty of Law from 2002 to 2005. He has been a visiting researcher or visiting professor at the law schools of Harvard, Yale, NYU, Georgetown, UCLA, and Zurich. He holds an LL.B. and Dr.Jur. from the Hebrew University of Jerusalem. Professor Zamir has authored or edited thirteen books and published some fifty articles in Israeli and American law journals, including the Columbia Law Review, the Journal of Legal Studies, California Law Review, Virginia Law Review, and the American Journal of International Law. He is co-author with Barak Medina of: Law, Economics, and Morality (Oxford University Press, 2010).