This volume of collected essays explores the most relevant
developments at the interface of economics and psychology, with
special attention to models of irrational behavior, and draws the
relevant implications of such models for the design of legal rules
and institutions. The application of economic models of irrational
behavior to law is especially challenging because specific
departures from rational behavior differ markedly from one another.
Furthermore, the analytical and deductive instruments of economic
theory have to be reshaped to deal with the fragmented and
heterogeneous findings of psychological research, lurning towards a
more experimental and inductive methodology. This volume brings
together scholars who are pioneering in this area, with a
presentation of some of the most exciting developments in the field
of legal and economic theory. Areas of application include criminal
law and sentencing, tort law, contract law, corporate law, and
Francesco Parisi is Professor of Law and Director, Law and Economics Program, George Mason University School of Law. He is co-editor of The Law and Economics of the European Union (2003), Economic Foundations of Private Law (2002), and Law and Economics (1997). Vernon L. Smith is Nobel Laureate in Economics, 2002, and Professor of Economics and Law, George Mason University.