'BEHAVIOURAL LAW AND ECONOMICS' (Sunstein, Thaler, Jolls) integrates:

Question

Accepted Answer

D.

1. BEHAVIOURAL LAW AND ECONOMICS (BLE) integrates BEHAVIOURAL ECONOMICS (Daniel Kahneman, Amos Tversky) with LAW AND ECONOMICS.
2. KEY ARGUMENT: Standard economic assumption of RATIONAL CHOICE is empirically wrong — humans display systematic COGNITIVE BIASES.
3. KEY BIASES:
4. (i) ANCHORING — over-relying on first information received;
5. (ii) FRAMING — same options described differently produce different choices;
6. (iii) LOSS AVERSION — losses loom larger than equivalent gains;
7. (iv) STATUS QUO BIAS — preference for current state;
8. (v) AVAILABILITY HEURISTIC — over-weighting easily recalled examples;
9. (vi) CONFIRMATION BIAS — seeking information supporting prior beliefs.
10. KEY THINKERS: Cass SUNSTEIN, Richard THALER, Christine JOLLS, Daniel KAHNEMAN (Nobel 2002), Amos TVERSKY.
11. POLICY IMPLICATIONS: 'NUDGE' (Sunstein and Thaler 2008) — libertarian paternalism; small interventions to encourage better choices.
12. APPLICATIONS to law: contract interpretation, criminal punishment, regulatory design, tax compliance.
13. Hence option B is correct.
_Source: Legal Research Methodology + Jurisprudence — Cass Sunstein and Richard Thaler 'Nudge' (2008); Behavioural Law and Economics movement_