Behavioral Economics
/ˌbɪˈheɪvjərəl ˌiːkəˈnɒmɪks/
Definitions
- (n.) A field of study combining psychology and economics to understand how cognitive biases and irrational behaviors affect economic decision-making, relevant in legal contexts such as contract law and regulatory policy.
Behavioral economics informs how courts assess the fairness of consumer contracts influenced by cognitive biases.
Forms
- behavioral economics
Related terms
See also
Commentary
In legal drafting and analysis, recognizing insights from behavioral economics helps address non-rational decision-making that traditional economic models might miss.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.