Law and Economics
Wednesday, June 2, 2010

John Drobak

Washington University in St. Louis, USA

John Drobak

The Limits of Rational Choice Theory in Economics and Law

Abstract

Rational choice theory is the foundation of both economics and law. Advances in behavioral psychology, experimental economics, and cognitive science have raised questions about the theory’s ability to describe human decision making in some circumstances. This lecture will explain what we have learned about human behavior and apply that knowledge to applications of both economic and legal theory. The lecture will also emphasize the importance of constraints, including Friedrich Hayek’s notion that culture is an important constraint on law.