"Does the Endowment Effect Justify Legal Intervention? The Debiasing Effect of Institutions"
JENNIFER ARLEN, New York University School of Law
STEPHAN W. TONTRUP, Max Planck Institute for Research on Collective Goods
We claim that the endowment effect rarely justifies legal intervention in private ordering. To our knowledge, we present the first theory to explain how institutions inhibit the endowment effect without altering people’s rights to their entitlements. The endowment effect...
I'll tell you about my new favorite idea, which like all new favorite ideas, is really an old idea. This one, from the 1960s, was used only in a couple of studies. It's called "latitude of acceptance". If I want to persuade you, what I need to do is pitch my arguments so that they're in the range of a bubble around your current belief; it's not too far from your current belief, but it's within this bubble. If your belief is that you're really, really anti-guns, let's say, and I want to move you a bit,...
Biologists like David MacDonald, Berlin's fellow Oxonian, have studied fox life in detail. As it turns out, Archilochus got it right: Foxes are far more wily and flexible learners than hedgehogs. But why?
Foxes also have a much longer childhood than hedgehogs. Hedgehogs develop their spines—that one big thing—almost as soon as they are born and are independent in only six weeks. Fox cubs are dependent for six months. As a result, hedgehogs need much less parental care—hedgehog fathers disappear...
The Question: Three Effects, Which One Wins?
Social science results don't always point in the same direction. Sometimes there are conflicting effects, and the question is, "Which effect is stronger?" The three effects compared in the new study (Campbell et al., 2014) are as follows:
The Anchoring Effect
Will the plaintiff who requests a million for pain and suffering do better than the plaintiff who simply says "you decide"? Yes. Jurors, along with the rest of us, are strongly influenced in numerical...
The judge has ruled against your client on every pretrial motion, including your motion for recusal and your opponent’s motion for sanctions. Could the judge be biased against you or your client? You will have to show more than adverse rulings to disqualify the judge for bias.
In Watkins v. Smith, the plaintiff, a non-lawyer authorized to represent clients before certain administrative tribunals, was recorded offering to waive a client’s fee in exchange for a romantic or sexual relationship....
Have you ever been involved in a conflict you just couldn’t imagine being resolved? In other words, a conflict that was so entrenched, you felt hopeless?
Researchers studying the role of emotions in the context of intractable (lengthy, all-encompassing, and possibly violent) conflicts have begun to look at the emotion of hope to understand what effect it can have on conciliatory attitudes. Hope is considered an important emotion in conflict resolution because it involves thinking about different...
What do dance partners, choirs, marching bands, reciting the pledge of allegiance and religious chanting have in common? They all suggest that synchronizing activities facilitate bonding and mutual support among the participants involved.
In a series of studies conducted at Stanford, researchers found that people walking in step with each other, or singing and waving cups in unison, reported greater feelings of connectedness and trust with their group – and earned higher pay-offs when playing...