Behavioral Law and Economics

Behavioral Law and Economics combines insights from psychology and economics to better understand how people make legal and economic decisions. Unlike traditional theory, which assumes people always choose logically and in their best interest, this approach recognizes that humans are influenced by biases, emotions, and cognitive limitations. It helps explain real-world behaviors, such as why people might not follow laws perfectly or make seemingly irrational choices. By incorporating these insights, it aims to create laws and policies that better guide people toward beneficial behaviors, improving justice and efficiency in society.