This paper examines the regulatory implications of behavioral economic insights. The central effect of behavioral economics in the legal literature to date has been to challenge the premise of formal economic theory that individuals understand their preferences and work to maximize these...

Frontmatter -- CONTENTS -- LIST OF CONTRIBUTORS -- PREFACE -- ACKNOWLEDGMENTS -- PART I: Introduction -- CHAPTER ONE. Behavioral Economics: Past, Present, Future / Camerer, Colin F. / Loewenstein, George -- PART II: Basic Topics -- REFERENCE-DEPENDENCE AND LOSS-AVERSION -- CHAPTER TWO....

In economic analyses of asymmetric information, better-informed agents are assumed capable of reproducing the judgments of less-informed agents. The authors discuss a systematic violation of this assumption that they call the "curse of knowledge." Better-informed agents are unable to ignore...

Neuroeconomics uses knowledge about brain mechanisms to inform economic analysis, and roots economics in biology. It opens up the "black box" of the brain, much as organizational economics adds detail to the theory of the firm. Neuroscientists use many tools— including brain imaging, behavior...