Law, psychology, and morality : the role of loss aversion
Zamir, EyalAuthor
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: the disutility generated by a loss is greater than the utility produced by a commensurate gain. Loss aversion is related to such phenomena as the status quo and omission biases, the endowment effect, and escalation of commitment. The book systematically analyzes the relationships between loss aversion and the law.
Bibliographic Level Mode of Issuance: Monograph
Includes bibliographical references and index.
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: the disutility generated by a loss is greater than the utility produced by a commensurate gain. Loss aversion is related to such phenomena as the status quo and omission biases, the endowment effect, and escalation of commitment. The book systematically analyzes the relationships between loss aversion and the law.
Description based on online resource; title from home page (viewed on October 28, 2014).
[Part] I. The psychology of loss aversion -- Loss aversion : an overview -- [Part] II. Understanding human behavior in legal contexts -- Consumer behavior -- The market for legal services : contingent fees -- Litigation and settlement -- [Part] III. Framing by the law -- Legally induced reference points -- [Part] IV. Loss aversion and basic features of the law -- Correspondence between loss aversion and the law -- Evolutionary theories -- Cognitive psychology, commonsense morality, and the law -- [Part] V. Normative analysis -- Loss aversion : normative implications.
Law and economics
Economics
Actions and defenses
Loss aversion
Cognitive psychology
Law, Politics & Government
Law, General & Comparative