The most glamorous and even glorious moments in a legal system come when a high court recognizes an abstract principle involving, for example, human liberty or equality. Indeed, Americans, and not a few non-Americans, have been greatly stirred--and divided--by the opinions of the Supreme Court, especially in the area of race relations, where the Court has tried to revolutionize American society. But these stirring decisions are aberrations, says Cass R. Sunstein, and perhaps thankfully so. In Legal Reasoning and Political Conflict, Sunstein, one of America's best known commentators on our legal system, offers a bold, new thesis about how the law should work in America, arguing that the courts best enable people to live together, despite their diversity, by resolving particular cases without taking sides in broader, more abstract conflicts.
Sunstein offers a close analysis of the way the law can mediate disputes in a diverse society, examining how the law works in practical terms, and showing that, to arrive at workable, practical solutions, judges must avoid broad, abstract reasoning. Why? For one thing, critics and adversaries who would never agree on fundamental ideals are often willing to accept the concrete details of a particular decision. Likewise, a plea bargain for someone caught exceeding the speed limit need not--indeed, must not--delve into sweeping issues of government regulation and personal liberty. Thus judges purposely limit the scope of their decisions to avoid reopening large-scale controversies. Sunstein calls such actions incompletely theorized agreements. In identifying them as the core feature of legal reasoning--and as a central part of constitutional thinking in America, South Africa, and Eastern Europe-- he takes issue with advocates of comprehensive theories and systemization, from Robert Bork (who champions the original understanding of the Constitution) to Jeremy Bentham, the father of utilitarianism, and Ronald Dworkin, who defends an ambitious role for courts in the elaboration of rights. Equally important, Sunstein goes on to argue that it is the living practice of the nation's citizens that truly makes law. For example, he cites Griswold v. Connecticut, a groundbreaking case in which the Supreme Court struck down Connecticut's restrictions on the use of contraceptives by married couples--a law that was no longer enforced by prosecutors. In overturning the legislation, the Court invoked the abstract right of privacy; the author asserts that the justices should have appealed to the narrower principle that citizens need not comply with laws that lack real enforcement. By avoiding large-scale issues and values, such a decision could have led to a different outcome in Bowers v. Hardwick, the decision that upheld Georgia's rarely prosecuted ban on sodomy. And by pointing to the need for flexibility over time and circumstances, Sunstein offers a novel understanding of the old ideal of the rule of law.
Legal reasoning can seem impenetrable, mysterious, baroque. This book helps dissolve the mystery. Whether discussing the interpretation of the Constitution or the spell cast by the revolutionary Warren Court, Cass Sunstein writes with grace and power, offering a striking and original vision of the role of the law in a diverse society. In his flexible, practical approach to legal reasoning, he moves the debate over fundamental values and principles out of the courts and back to its rightful place in a democratic state: the legislatures elected by the people.

THE INTERNATIONAL BESTSELLER 'A monumental, gripping book ... Outstanding' SUNDAY TIMES 'Noise may be the most important book I've read in more than a decade. A genuinely new idea so exceedingly important you will immediately put it into practice. A masterpiece' Angela Duckworth, author of Grit 'An absolutely brilliant investigation of a massive societal problem that has been hiding in plain sight' Steven Levitt, co-author of Freakonomics From the world-leaders in strategic thinking and the multi-million copy bestselling authors of Thinking Fast and Slow and Nudge, the next big book to change the way you think. We like to think we make decisions based on good reasoning - and that our doctors, judges, politicians, economic forecasters and employers do too. In this groundbreaking book, three world-leading behavioural scientists come together to assess the last great fault in our collective decision-making: noise. We all make bad judgements more than we think. Noise shows us what we can do to make better ones.

The Sunday Times bestseller ‘A monumental, gripping book … Outstanding’ Sunday Times Wherever there is human judgement, there is noise. ‘Noise may be the most important book I've read in more than a decade. A genuinely new idea so exceedingly important you will immediately put it into practice. A masterpiece’ Angela Duckworth, author of Grit ‘An absolutely brilliant investigation of a massive societal problem that has been hiding in plain sight’ Steven Levitt, co-author of Freakonomics From the world-leaders in strategic thinking and the multi-million copy bestselling authors of Thinking Fast and Slow and Nudge, the next big book to change the way you think. Imagine that two doctors in the same city give different diagnoses to identical patients – or that two judges in the same court give different sentences to people who have committed matching crimes. Now imagine that the same doctor and the same judge make different decisions depending on whether it is morning or afternoon, or Monday rather than Wednesday, or they haven’t yet had lunch. These are examples of noise: variability in judgements that should be identical. In Noise, Daniel Kahneman, Olivier Sibony and Cass R. Sunstein show how noise produces errors in many fields, including in medicine, law, public health, economic forecasting, forensic science, child protection, creative strategy, performance review and hiring. And although noise can be found wherever people are making judgements and decisions, individuals and organizations alike commonly ignore its impact, at great cost. Packed with new ideas, and drawing on the same kind of sharp analysis and breadth of case study that made Thinking, Fast and Slow and Nudge international bestsellers, Noise explains how and why humans are so susceptible to noise and bias in decision-making. We all make bad judgements more than we think. With a few simple remedies, this groundbreaking book explores what we can do to make better ones.

*Once again a New York Times bestseller! First the original edition, and now the new Final Edition* An essential new edition revised and updated from cover to cover of one of the most important books of the last two decades, by Nobel Prize winner Richard H. Thaler and Cass R. Sunstein More than 2 million copies sold Since the original publication of Nudge more than a decade ago, the title has entered the vocabulary of businesspeople, policy makers, engaged citizens, and consumers everywhere. The book has given rise to more than 400 "nudge units" in governments around the world and countless groups of behavioral scientists in every part of the economy. It has taught us how to use thoughtful "choice architecture"-a concept the authors invented-to help us make better decisions for ourselves, our families, and our society. Now, the authors have rewritten the book from cover to cover, making use of their experiences in and out of government over the past dozen years as well as an explosion of new research in numerous academic disciplines. To commit themselves to never undertaking this daunting task again, they are calling this the "final edition." It offers a wealth of new insights, for both its avowed fans and newcomers to the field, about a wide variety of issues that we face in our daily lives-COVID-19, health, personal finance, retirement savings, credit card debt, home mortgages, medical care, organ donation, climate change, and "sludge" (paperwork and other nuisances we don't want, and that keep us from getting what we do want)-all while honoring one of the cardinal rules of nudging: make it fun!

All over the world, private and public institutions have been attracted to "nudges," understood as interventions that preserve freedom of choice, but that steer people in particular directions. The most effective nudges are often "defaults," which establish what happens if people do nothing. For example, automatic enrollment in savings plans is a default nudge, as is automatic enrollment in green energy. Default rules are in widespread use, but we have very little information about how people experience them, whether they see themselves as manipulated by them, and whether they approve of them in practice. In this book, Patrik Michaelsen and Cass R. Sunstein offer a wealth of new evidence about people's experiences and perceptions with respect to default rules. They argue that this evidence can help us to answer important questions about the effectiveness and ethics of nudging. The evidence offers a generally positive picture of how default nudges are perceived and experienced. The central conclusion is simple: empirical findings strongly support the conclusion that, taken as such, default nudges are both ethical and effective. These findings, and the accompanying discussion, have significant implications for policymakers in many nations, and also for the private sector.

Since America's founding, the U.S. Supreme Court had issued a vast number of decisions on a staggeringly wide variety of subjects. And hundreds of judges have occupied the bench. Yet as Cass R. Sunstein, the eminent legal scholar and bestselling co-author of Nudge, points out, almost every one of the Justices fits into a very small number of types regardless of ideology: the hero, the soldier, the minimalist, and the mute. Heroes are willing to invoke the Constitution to invalidate state laws, federal legislation, and prior Court decisions. They loudly embrace first principles and are prone to flair, employing dramatic language to fundamentally reshape the law. Soldiers, on the other hand, are skeptical of judicial power, and typically defer to decisions made by the political branches. Minimalists favor small steps and only incremental change. They worry that bold reversals of long-established traditions may be counterproductive, producing a backlash that only leads to another reversal. Mutes would rather say nothing at all about the big constitutional issues, and instead tend to decide cases on narrow grounds or keep controversial cases out of the Court altogether by denying standing. As Sunstein shows, many of the most important constitutional debates are in fact contests between the four Personae. Whether the issue involves slavery, gender equality, same-sex marriage, executive power, surveillance, or freedom of speech, debates have turned on choices made among the four Personae-choices that derive as much from psychology as constitutional theory. Sunstein himself defends a form of minimalism, arguing that it is the best approach in a self-governing society of free people. More broadly, he casts a genuinely novel light on longstanding disputes over the proper way to interpret the constitution, demonstrating that behind virtually every decision and beneath all of the abstract theory lurk the four Personae. By emphasizing the centrality of character types, Sunstein forces us to rethink everything we know about how the Supreme Court works.

A powerful analysis of why lies and falsehoods spread so rapidly now, and how we can reform our laws and policies regarding speech to alleviate the problem. Lying has been with us from time immemorial. Yet today is different-and in many respects worse. All over the world, people are circulating damaging lies, and these falsehoods are amplified as never before through powerful social media platforms that reach billions. Liars are saying that COVID-19 is a hoax. They are claiming that vaccines cause autism. They are lying about public officials and about people who aspire to high office. They are lying about their friends and neighbors. They are trying to sell products on the basis of untruths. Unfriendly governments, including Russia, are circulating lies in order to destabilize other nations, including the United Kingdom and the United States. In the face of those problems, the renowned legal scholar Cass Sunstein probes the fundamental question of how we can deter lies while also protecting freedom of speech. To be sure, we cannot eliminate lying, nor should we try to do so. Sunstein shows why free societies must generally allow falsehoods and lies, which cannot and should not be excised from democratic debate. A main reason is that we cannot trust governments to make unbiased judgments about what counts as "fake news." However, governments should have the power to regulate specific kinds of falsehoods: those that genuinely endanger health, safety, and the capacity of the public to govern itself. Sunstein also suggests that private institutions, such as Facebook and Twitter, have a great deal of room to stop the spread of falsehoods, and they should be exercising their authority far more than they are now doing. As Sunstein contends, we are allowing far too many lies, including those that both threaten public health and undermine the foundations of democracy itself.

An updated and refreshed edition of the groundbreaking book that shows how people can be nudged toward decisions that will improve their lives "If you've read Nudge and think you fully grasp the concept and its uses, you are mistaken. The new edition significantly deepened my understanding of what nudges are and how they can be employed. It truly is a must-read." Robert Cialdini, New York Times bestselling author of Influence "Few books can be said to have changed the world, but Nudge did. The Final Edition is marvelous: funny, useful, and wise." Daniel Kahneman, #1 New York Times bestselling author of Thinking, Fast and Slow Since the original publication of Nudge more than a decade ago, the word "nudge" has entered the vocabulary of businesspeople, policymakers, engaged citizens, and consumers everywhere. The book has given rise to more than 200 "nudge units" in governments around the world and countless groups of behavioral scientists in every part of the economy. It has taught us how to use thoughtful "choice architecture"-a concept the authors invented-to help us make better decisions for ourselves, our families, and our society. Now, the authors have rewritten the book from cover to cover, making use of their experiences in and out of government over the past dozen years as well as the explosion of new research in numerous academic disciplines. It offers a wealth of new insights, for both its avowed fans and newcomers to the field, about a wide variety of issues that we face in our daily lives-COVID-19, health, personal finance, retirement savings, credit card debt, home mortgages, medical care, organ donation, climate change, and "sludge" (paperwork and other nuisances that we don't want and keep us from getting what we do want)-all while honoring one of the cardinal rules of nudging: make it fun!

Normal Rationality is a selection of the most important work of Edna Ullmann-Margalit, presenting some influential and widely admired essays alongside some that are not well known. She was an unorthodox and deeply original philosopher whose work illuminated the largest mysteries of human life. Much of her writing focuses on two fundamental questions. (1) How do people proceed when they cannot act on the basis of reasons, or project likely consequences? (2) How is social order possible? Ullmann-Margalit's answers, emphasizing what might be called biased rationality, are important not only for philosophy, but also for political science, psychology, sociology, cognitive science, economics (including behavioral economics), law, and even public policy. Ullmann-Margalit demonstrates that people have identifiable strategies for making difficult decisions, whether the question is small (what to buy at a supermarket) or big (whether to transform one's life in some large-scale way). She also shows that social dilemmas are solved by norms; that invisible-hand explanations take two identifiable (and dramatically different) forms; that trust can emerge in seemingly unpromising situations; and that considerateness is the foundation on which our relationships are organized in both the thin context of the public space and the intimate context of the family. One of the distinguishing features of Ullmann-Margalit's work is its close attention to the details of human experience, and its use of those details to offer fresh understandings of social phenomena. Her essays cast new light on a diverse assortment of problems in philosophy, social science, and individual lives.

The completely updated, final edition of the global bestseller - one of the most influential books of the 21st century 'Few books can be said to have changed the world, but Nudge did. The Final Edition is marvellous: funny, useful, and wise' Daniel Kahneman Nudge has transformed the way individuals, companies and governments look at the world - and in the process has become one of the most important books of the twenty-first century. This completely updated edition offers a wealth of new insights for fans and newcomers alike - about COVID-19, diet, personal finance, retirement savings, medical care, organ donation, and climate change. Every day we make decisions: about the things we buy or the meals we eat; about the investments we make and the time we spend; about our health and that of the planet. Unfortunately, we often choose badly. We are all susceptible to biases that can lead us to make bad decisions that make us poorer, less healthy and less happy. And, as Richard Thaler and Cass Sunstein show, no choice is ever presented to us in a neutral way. But by knowing how people think, we can make it easier for them to choose what is best for themselves, for their families and for society. With brilliant insight and wonderful levity, Thaler and Sunstein demonstrate how best to nudge us in the right directions, without ever restricting our freedom of choice.

Best-selling author Cass R. Sunstein examines how to avoid worst-case scenarios The world is increasingly confronted with new challenges related to climate change, globalization, disease, and technology. Governments are faced with having to decide how much risk is worth taking, how much destruction and death can be tolerated, and how much money should be invested in the hopes of avoiding catastrophe. Lacking full information, should decision-makers focus on avoiding the most catastrophic outcomes? When should extreme measures be taken to prevent as much destruction as possible? Averting Catastrophe explores how governments ought to make decisions in times of imminent disaster. Cass R. Sunstein argues that using the "maximin rule," which calls for choosing the approach that eliminates the worst of the worst-case scenarios, may be necessary when public officials lack important information, and when the worst-case scenario is too disastrous to contemplate. He underscores this argument by emphasizing the reality of "Knightian uncertainty," found in circumstances in which it is not possible to assign probabilities to various outcomes. Sunstein brings foundational issues in decision theory in close contact with real problems in regulation, law, and daily life, and considers other potential future risks. At once an approachable introduction to decision-theory and a provocative argument for how governments ought to handle risk, Averting Catastrophe offers a definitive path forward in a world rife with uncertainty.

Here is one of the most fundamental questions in human life: How do we decide how we decide? We make such decisions all the time. If you trust your doctor, you might decide to follow a simple rule for medical decisions: Do whatever your doctor suggests. If you like someone a lot, and maybe love them, but are not sure whether you want to marry them, you might do this: Live with them first. Some of these strategies are wise. They prevent error. They improve your emotional well-being. Some of these strategies are foolish. They lead you in the direction of terrible mistakes. They prevent you from learning. They might make you miserable. Decisions about Decisions explores how people do, and should, make decisions about decisions. It aims to see what such decisions are, to explore how they go right, and see where they go wrong.

Many "nudges" aim to make life simpler, safer, or easier for people to navigate, but what do members of the public really think about these policies? Drawing on surveys from numerous nations around the world, Sunstein and Reisch explore whether citizens approve of nudge policies. Their most important finding is simple and striking. In diverse countries, both democratic and nondemocratic, strong majorities approve of nudges designed to promote health, safety, and environmental protection-and their approval cuts across political divisions. In recent years, many governments have implemented behaviorally informed policies, focusing on nudges-understood as interventions that preserve freedom of choice, but that also steer people in certain directions. In some circles, nudges have become controversial, with questions raised about whether they amount to forms of manipulation. This fascinating book carefully considers these criticisms and answers important questions. What do citizens actually think about behaviorally informed policies? Do citizens have identifiable principles in mind when they approve or disapprove of the policies? Do citizens of different nations agree with each other? From the answers to these questions, the authors identify six principles of legitimacy-a "bill of rights" for nudging that build on strong public support for nudging policies around the world, while also recognizing what citizens disapprove of. Their bill of rights is designed to capture citizens' central concerns, reflecting widespread commitments to freedom and welfare that transcend national boundaries.

Wherever there is human judgment, there is noise.

Imagine that two doctors in the same city give different diagnoses to identical patients – or that two judges in the same court give different sentences to people who have committed matching crimes. Now imagine that the same doctor and the same judge make different decisions depending on whether it is morning or afternoon, or Monday rather than Wednesday, or they haven’t yet had lunch. These are examples of noise: variability in judgments that should be identical.

In Noise, Daniel Kahneman, Olivier Sibony and Cass R. Sunstein show how noise produces errors in many fields, including in medicine, law, public health, economic forecasting, forensic science, child protection, creative strategy, performance review and hiring. And although noise can be found wherever people are making judgments and decisions, individuals and organizations alike commonly ignore its impact, at great cost.

Packed with new ideas, and drawing on the same kind of sharp analysis and breadth of case study that made Thinking, Fast and Slow and Nudge international bestsellers, Noise explains how and why humans are so susceptible to noise and bias in decision-making. We all make bad judgments more than we think. With a few simple remedies, this groundbreaking book explores what we can do to make better ones.

This Palgrave Pivot offers comprehensive evidence about what people actually think of "nudge" policies designed to steer decision makers' choices in positive directions. The data reveal that people in diverse nations generally favor nudges by strong majorities, with a preference for educative efforts - such as calorie labels - that equip individuals to make the best decisions for their own lives. On the other hand, there are significant arguments for noneducational nudges - such as automatic enrollment in savings plans - as they allow people to devote their scarce time and attention to their most pressing concerns. The decision to use either educative or noneducative nudges raises fundamental questions about human freedom in both theory and practice. Sunstein's findings and analysis offer lessons for those involved in law and policy who are choosing which method to support as the most effective way to encourage lifestyle changes.

The rise of the "information society" offers not only considerable peril but also great promise Beset from all sides by a never-ending barrage of media, how can we ensure that the most accurate information emerges and is heeded? Cass R. Sunstein here develops a deeply optimistic understanding of the human potential to pool information, combat groupthink, and to use that knowledge to improve our lives. New ways, many Internet-based, to share and aggregate information-including wikis, open-source software, and prediction markets-are helping companies, schools, governments, and individuals not only to acquire, but also to create, ever-growing bodies of accurate knowledge without succumbing to the dangers of a hive-mind mentality. In a world where opinion and anecdote increasingly compete on equal footing with hard evidence, the on-line effort of many minds coming together could provide the best path to infotopia.

From the Nobel Prize-winning author of Thinking, Fast and Slow and the coauthor of Nudge, a revolutionary exploration of why people make bad judgments and how to make better ones--"a tour de force" (New York Times). Imagine that two doctors in the same city give different diagnoses to identical patients--or that two judges in the same courthouse give markedly different sentences to people who have committed the same crime. Suppose that different interviewers at the same firm make different decisions about indistinguishable job applicants--or that when a company is handling customer complaints, the resolution depends on who happens to answer the phone. Now imagine that the same doctor, the same judge, the same interviewer, or the same customer service agent makes different decisions depending on whether it is morning or afternoon, or Monday rather than Wednesday. These are examples of noise: variability in judgments that should be identical. In Noise, Daniel Kahneman, Olivier Sibony, and Cass R. Sunstein show the detrimental effects of noise in many fields, including medicine, law, economic forecasting, forensic science, bail, child protection, strategy, performance reviews, and personnel selection. Wherever there is judgment, there is noise. Yet, most of the time, individuals and organizations alike are unaware of it. They neglect noise. With a few simple remedies, people can reduce both noise and bias, and so make far better decisions. Packed with original ideas, and offering the same kinds of research-based insights that made Thinking, Fast and Slow and Nudge groundbreaking New York Times bestsellers, Noise explains how and why humans are so susceptible to noise in judgment--and what we can do about it.

Behavioral science is playing an increasing role in public policy, and it is raising new questions about fundamental issues - the role of government, freedom of choice, paternalism, and human welfare. In diverse nations, public officials are using behavioral findings to combat serious problems - poverty, air pollution, highway safety, COVID-19, discrimination, employment, climate change, and occupational health. Exploring theory and practice, this Element attempts to provide one-stop shopping for those who are new to the area and for those who are familiar with it. With reference to nudges, taxes, mandates, and bans, it offers concrete examples of behaviorally informed policies. It also engages the fundamental questions, include the proper analysis of human welfare in light of behavioral findings. It offers a plea for respecting freedom of choice - so long as people's choices are adequately informed and free from behavioral biases.

In recent years, 'nudge units' or 'behavioral insights teams' have been created in the United States, the United Kingdom, Germany, and other nations. All over the world, public officials are using the behavioral sciences to protect the environment, promote employment and economic growth, reduce poverty, and increase national security. In this book, Cass R. Sunstein, the eminent legal scholar and best-selling co-author of Nudge (2008), breaks new ground with a deep yet highly readable investigation into the ethical issues surrounding nudges, choice architecture, and mandates, addressing such issues as welfare, autonomy, self-government, dignity, manipulation, and the constraints and responsibilities of an ethical state. Complementing the ethical discussion, The Ethics of Influence: Government in the Age of Behavioral Science contains a wealth of new data on people's attitudes towards a broad range of nudges, choice architecture, and mandates.

Bestselling author Cass R. Sunstein reveals the appeal and the danger of conformity We live in an era of tribalism, polarization, and intense social division-separating people along lines of religion, political conviction, race, ethnicity, and sometimes gender. How did this happen? In Conformity, Cass R. Sunstein argues that the key to making sense of living in this fractured world lies in understanding the idea of conformity-what it is and how it works-as well as the countervailing force of dissent. An understanding of conformity sheds new light on many issues confronting us today: the role of social media, the rise of fake news, the growth of authoritarianism, the success of Donald Trump, the functions of free speech, debates over immigration and the Supreme Court, and much more. Lacking information of our own and seeking the good opinion of others, we often follow the crowd, but Sunstein shows that when individuals suppress their own instincts about what is true and what is right, it can lead to significant social harm. While dissenters tend to be seen as selfish individualists, dissent is actually an important means of correcting the natural human tendency toward conformity and has enormous social benefits in reducing extremism, encouraging critical thinking, and protecting freedom itself. Sunstein concludes that while much of the time it is in the individual's interest to follow the crowd, it is in the social interest for individuals to say and do what they think is best. A well-functioning democracy depends on it.

What is the relationship between fear, danger, and the law? Cass Sunstein attacks the increasingly influential Precautionary Principle - the idea that regulators should take steps to protect against potential harms, even if causal chains are uncertain and even if we do not know that harms are likely to come to fruition. Focusing on such problems as global warming, terrorism, DDT, and genetic engineering, Professor Sunstein argues that the Precautionary Principle is incoherent. Risks exist on all sides of social situations, and precautionary steps create dangers of their own. Diverse cultures focus on very different risks, often because social influences and peer pressures accentuate some fears and reduce others. Instead of adopting the Precautionary Principle, Professor Sunstein argues for three steps: a narrow Anti-Catastrophe Principle, designed for the most serious risks; close attention to costs and benefits; and an approach called 'libertarian paternalism', designed to respect freedom of choice while also moving people in directions that will make their lives go better. He also shows how free societies can protect liberty amidst fears about terrorism and national security. Laws of Fear represents a major statement from one of the most influential political and legal theorists writing today.

What should be done about airplane safety and terrorism, global warming, polluted water, nuclear power, and genetically engineered food? Decision-makers often respond to temporary fears, and the result is a situation of hysteria and neglect--and unnecessary illness and death. Risk and Reason explains the sources of these problems and explores what can be done about them. It shows how individual thinking and social interactions lead us in foolish directions. Offering sound proposals for social reform, it explains how a more sensible system of risk regulation, embodied in the idea of a "cost-benefit state," could save many thousands of lives and many billions of dollars too--and protect the environment in the process. Cass R. Sunstein is the Karl N. Llewellyn Distinguished Service Professor at the University of Chicago. Appointed by President Clinton to serve on the Advisory Committee on the Public Interest Obligations of Television Broadcasters. His many books include Republic.com (Princeton, 2001) and Designing Democracy (Oxford, 2001). He has worked in the United States Department of Justice and advised on law reform and constitution-making in many nations.

This exciting volume marks the birth of a new field--a field that studies law with reference to an accurate, rather than a crude, understanding of human behavior. Behavioral Law and Economics presents new findings in cognitive psychology and behavioral economics, which show that people are frequently both unselfish and over-optimistic; that people have limited willpower and limited self-control; and that people are "boundedly" rational, in the sense that they have limited information-processing powers, and frequently rely on mental short-cuts and rules of thumb. Understanding this kind of human behavior has large-scale implications for the analysis of law, in areas including environmental protection, taxation and tax compliance, constitutional law, voting behavior, punitive damages for civil rights violations, labor negotiations and strikes, and corporate finance. Behavioral Law and Economics offers many new insights into these fields and suggestions for legal reform. With a better knowledge of human behavior, it is possible to predict the actual effects of law, to see how law might actually promote society's goals, and to reassess the questions of what law should be doing.