Foundations of Law and Economics
Introductory
Bounded Rationality
A decision-making condition in which actors face limits of information, attention, cognition, time, or computational capacity.
Why It Matters
Bounded rationality helps explain why legal rules may need to account for complexity, salience, defaults, contracting limits, administrative burdens, and institutional competence.
Selected Literature
A short list of directly relevant archive entries.
1979
Advanced
Transaction-Cost Economics: The Governance of Contractual Relations
Oliver E. Williamson
Journal of Law and Economics
1998
Advanced
A Behavioral Approach to Law and Economics
Christine Jolls, Cass R. Sunstein, and Richard H. Thaler
Stanford Law Review
2000
Advanced
Law and Behavioral Science: Removing the Rationality Assumption from Law and Economics
Russell B. Korobkin and Thomas S. Ulen
California Law Review
2012
Advanced
Seduction by Contract: Law, Economics, and Psychology in Consumer Markets
Oren Bar-Gill
Oxford University Press
Related Cases
1707
Foundations of Law and Economics
Keeble v. Hickeringill
11 East 574, 103 Eng. Rep. 1127 (K.B. 1707)
Property protection, malicious interference, and incentives to make productive use of land.
1805
Foundations of Law and Economics
Pierson v. Post
3 Cai. R. 175 (N.Y. Sup. Ct. 1805)
First possession, capture rules, and the administrability of property rights in wild animals.
1854
Foundations of Law and Economics
Hadley v. Baxendale
9 Exch. 341, 156 Eng. Rep. 145 (1854)
Foreseeability, information disclosure, and limits on consequential damages for breach of contract.
1879
Foundations of Law and Economics
Sturges v. Bridgman
11 Ch. D. 852 (1879)
Nuisance, coming to the nuisance, and reciprocal conflicts over incompatible land uses.