Abstract

http://ssrn.com/abstract=981250
 
 

References (31)



 


 



The Role of Status Quo Bias and Bayesian Learning in the Creation of New Legal Rights


Francesco Parisi


University of Minnesota - Law School; University of Bologna

Robert L. Scharff


Ohio State University - Department of Consumer Sciences


Journal of Law, Economics, and Policy, 2006
Minnesota Legal Studies Research Paper No. 07-10

Abstract:     
We consider the role of status quo bias and Bayesian learning on the creation of new legal rights utilizing a model of legal evolution in which judges have limited discretion to create new precedent based on personal values, but, in the long run, are constrained by efficiency criteria. Our model demonstrates that status quo bias may effectively transform an ex ante inefficient rule into an ex post efficient rule. Because these legal rights are internalized over time through a process of Bayesian learning, new precedent is vulnerable to reversal until the new right has been sufficiently recognized and accepted.

Number of Pages in PDF File: 29

Keywords: Status quo bias, Bayesian Learning, Legal Evolution, Legal Rights

JEL Classification: K10, K41

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Date posted: April 20, 2007  

Suggested Citation

Parisi, Francesco and Scharff, Robert L., The Role of Status Quo Bias and Bayesian Learning in the Creation of New Legal Rights. Journal of Law, Economics, and Policy, 2006; Minnesota Legal Studies Research Paper No. 07-10. Available at SSRN: http://ssrn.com/abstract=981250

Contact Information

Francesco Parisi (Contact Author)
University of Minnesota - Law School ( email )
229 19th Avenue South
Minneapolis, MN 55455
United States
University of Bologna ( email )
Piazza Scaravilli 1
40126 Bologna, fc 47100
Italy
Robert L. Scharff
Ohio State University - Department of Consumer Sciences ( email )
Columbus, OH 43210
United States
614-292-4549 (Phone)
Feedback to SSRN


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