Modelling under False Assumptions

14 Pages Posted: 11 Sep 2023

See all articles by Juan Martín Morando

Juan Martín Morando

Escuela de Derecho de la Universidad de Palermo; Universidad Argentina de la Empresa (UADE)

Date Written: February 1, 2023

Abstract

When the Rational Choice Model fails to explain or predict human behavior, the Behavioral Economics model becomes handy. This model bases its assumptions on the premise that people are not rational because heuristics and biases may influence their reasoning and behavior. We argue that there may be a better explanation: the assumption that people know the Law is false and that those erratic behaviors may be a product of their ignorance.

Keywords: Rational Choice Model, Behavioral Economics, Model Assumptions, Law & Economics

JEL Classification: K00, K19

Suggested Citation

Morando, Juan Martín, Modelling under False Assumptions (February 1, 2023). Available at SSRN: https://ssrn.com/abstract=4548417 or http://dx.doi.org/10.2139/ssrn.4548417

Juan Martín Morando (Contact Author)

Escuela de Derecho de la Universidad de Palermo ( email )

Mario Bravo 1050
Buenos Aires
Argentina

HOME PAGE: http://https://www.palermo.edu/derecho/iaed/

Universidad Argentina de la Empresa (UADE) ( email )

1016 Buenos Aires
Argentina

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