Behavioral Economics and Private International Law

13 Pages Posted: 8 Apr 2015  

Horst Eidenmueller

University of Oxford; European Corporate Governance Institute (ECGI)

Johanna Stark

Max Planck Institute for Tax Law and Public Finance

Date Written: April 6, 2015

Abstract

This article explores the relevance of behavioral economics for legal issues in private international law. It finds that this relevance is limited. Choice of law problems in particular can be fruitfully analyzed with the neo-classical apparatus of economic theory that includes information asymmetries and externalities. Behavioral economics enhances our understanding of such problems especially because of phenomena such as status quo bias, availability heuristics, over-optimism and hyperbolic discounting.

Keywords: Rational Choice, Behavioral Law and Economics, Private International Law, Conflicts of Laws, Choice of Law

JEL Classification: A12, B41, K00

Suggested Citation

Eidenmueller, Horst and Stark, Johanna, Behavioral Economics and Private International Law (April 6, 2015). Oxford Legal Studies Research Paper No. 24/2015. Available at SSRN: https://ssrn.com/abstract=2591084

Horst G. M. Eidenmueller (Contact Author)

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

European Corporate Governance Institute (ECGI) ( email )

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

Johanna Stark

Max Planck Institute for Tax Law and Public Finance ( email )

Marstallplatz 1
Munich, 80539
Germany

HOME PAGE: http://www.tax.mpg.de/en/business_and_tax_law/business_and_tax_taw_people/dr_johanna_stark.html

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