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Should Antitrust Survive Behavioral Economics?
January 4, 2019
The accepted economic foundation of antitrust law is straightforward: The neoclassical market model shows that perfect competition among firms maximizes productive and allocative efficiencies and social welfare. This model rests on several assumptions, including — as in neoclassical economics more generally — the notion that consumers are rational actors whose decisions always maximize their utility. This model rests on several assumptions, including — as in neoclassical economics more generally...
January 4, 2019
The accepted economic foundation of antitrust law is straightforward: The neoclassical market model shows that perfect competition among firms maximizes productive and allocative efficiencies and social welfare. This model rests on several assumptions, including — as in neoclassical economics more generally — the notion that consumers are rational actors whose decisions always maximize their utility. This model rests on several assumptions, including — as in neoclassical economics more generally...
When and Why Defaults Influence Decisions: A Meta-Analysis of Default Effects
January 3, 2019
When people make decisions with a pre-selected choice option—a “default”—they are more likely to select that option. Because defaults are easy to implement, they constitute one of the most widely employed tools in the choice architecture toolbox. However, to decide when defaults should be used instead of other choice architecture tools, policy-makers must know how effective defaults are, and when and why their effectiveness varies. To answer these questions, we conduct a literature search...
January 3, 2019
When people make decisions with a pre-selected choice option—a “default”—they are more likely to select that option. Because defaults are easy to implement, they constitute one of the most widely employed tools in the choice architecture toolbox. However, to decide when defaults should be used instead of other choice architecture tools, policy-makers must know how effective defaults are, and when and why their effectiveness varies. To answer these questions, we conduct a literature search...
The 20 Most Important Legal Technology Developments of 2018
January 1, 2019
For several years now, I’ve closed out the year with a round-up of the 10 most important legal developments (2016, 2015, 2014, 2013)....
January 1, 2019
For several years now, I’ve closed out the year with a round-up of the 10 most important legal developments (2016, 2015, 2014, 2013)....
Ask Ariely: On Resentful Recipients, Exciting Exercises, and Ungrateful Guests
December 25, 2018
It might be impossible for the recipient of a gift not to feel obligated to reciprocate in some way. The need for reciprocity is one of the beautiful things about human nature: It is a building block of society, and we wouldn’t want to eliminate it even if we could. So while you might not need any gifts, I wouldn’t deprive your friends and family of the chance to give you something. Instead, encourage them to find a gift that is meaningful but simple and cheap.
December 25, 2018
It might be impossible for the recipient of a gift not to feel obligated to reciprocate in some way. The need for reciprocity is one of the beautiful things about human nature: It is a building block of society, and we wouldn’t want to eliminate it even if we could. So while you might not need any gifts, I wouldn’t deprive your friends and family of the chance to give you something. Instead, encourage them to find a gift that is meaningful but simple and cheap.
Sunstein on Algorithms & Biases
December 19, 2018
Cass R. Sunstein (Harvard Law School; Harvard University - Harvard Kennedy School (HKS)) has posted Algorithms, Correcting Biases (Forthcoming, Social Research) on SSRN. Here is the abstract: A great deal of theoretical work explores the possibility that algorithms may be biased in one or another respect. But for purposes of law and policy, some of the most important empirical research finds exactly the opposite. In the context of bail decisions, an algorithm designed to predict...
December 19, 2018
Cass R. Sunstein (Harvard Law School; Harvard University - Harvard Kennedy School (HKS)) has posted Algorithms, Correcting Biases (Forthcoming, Social Research) on SSRN. Here is the abstract: A great deal of theoretical work explores the possibility that algorithms may be biased in one or another respect. But for purposes of law and policy, some of the most important empirical research finds exactly the opposite. In the context of bail decisions, an algorithm designed to predict...
Analytics in Law
December 8, 2018
The concept of analyzing data in litigation is not new. Lawyers and legal researchers search for precedents that help strengthen...
December 8, 2018
The concept of analyzing data in litigation is not new. Lawyers and legal researchers search for precedents that help strengthen...
Forget the “Carrot and Stick” Approach!
November 18, 2018
Further, newer research shows that this “carrot and stick” approach may backfire when participants are offered rewards “…for doing things that aren’t especially interesting, particularly if you watch to see what happens after the rewards stop coming.” (Id.) The participants still put off doing the unappealing task despite being offered a reward for finishing early. Procrastination still occurred. (Id.) And, this approach did not improve school attendance. Again, pupils were offered...
November 18, 2018
Further, newer research shows that this “carrot and stick” approach may backfire when participants are offered rewards “…for doing things that aren’t especially interesting, particularly if you watch to see what happens after the rewards stop coming.” (Id.) The participants still put off doing the unappealing task despite being offered a reward for finishing early. Procrastination still occurred. (Id.) And, this approach did not improve school attendance. Again, pupils were offered...
Diffusion of Legal Innovations: The Case of Israeli Class Actions
November 16, 2018
Under the standard model in law and economics, agents maximize expected profit subject to constraints set by legal rules. In such a model, the expected reaction to legal innovations is immediate. However, this is not what we observe after class actions have been introduced into Israeli law. For a long time, the new procedure was rarely utilized. Then, the adoption process gained momentum. We discuss alternative explanations for this phenomenon. We find that class action filings are explained not only...
November 16, 2018
Under the standard model in law and economics, agents maximize expected profit subject to constraints set by legal rules. In such a model, the expected reaction to legal innovations is immediate. However, this is not what we observe after class actions have been introduced into Israeli law. For a long time, the new procedure was rarely utilized. Then, the adoption process gained momentum. We discuss alternative explanations for this phenomenon. We find that class action filings are explained not only...
New Supercomputer Mimics Human Brain, Researchers Say
November 10, 2018
A new supercomputer is able to mimic how the human brain functions, and can perform 200 quadrillion actions simultaneously. The Spiking Neural Network Architecture, or SpiNNaker, went online last week for the first time at the University of Manchester in Britain. The computer can model more neurons in real time than any machine on the planet, developers say. "SpiNNaker completely re-thinks the way conventional computers work. We've essentially created a machine that works more like a brain...
November 10, 2018
A new supercomputer is able to mimic how the human brain functions, and can perform 200 quadrillion actions simultaneously. The Spiking Neural Network Architecture, or SpiNNaker, went online last week for the first time at the University of Manchester in Britain. The computer can model more neurons in real time than any machine on the planet, developers say. "SpiNNaker completely re-thinks the way conventional computers work. We've essentially created a machine that works more like a brain...
The Eight Big Negotiation Mistakes that Entrepreneurs Make
November 6, 2018
Entrepreneurs, whose job is to transform ideas into new products or services for which there is a market, pride themselves on creating disruption and driving innovation. But they often fumble key interactions because they don't know how to handle the negotiation challenges that almost always arise. Entrepreneurship typically entails a series of interactions between founders, partners, potential partners, investors, and others at various stages of the entrepreneurial process – from the “seed”...
November 6, 2018
Entrepreneurs, whose job is to transform ideas into new products or services for which there is a market, pride themselves on creating disruption and driving innovation. But they often fumble key interactions because they don't know how to handle the negotiation challenges that almost always arise. Entrepreneurship typically entails a series of interactions between founders, partners, potential partners, investors, and others at various stages of the entrepreneurial process – from the “seed”...
