Law & Economics Working Papers
A behavioral economics literature identifies how behaviorally-derived assumptions affect the economic analysis of criminal law and public law enforcement. We review and extend that literature. Specifically, we consider the effect of cognitive biases, prospect theory, hedonic adaptation, hyperbolic discounting, fairness preferences, and other deviations from standard economic assumptions on the optimal rules for deterring potential offenders and for regulating (or motivating) potential crime victims, legislators, police, prosecutors, judges, and juries.
Richard H. McAdams & Thomas S. Ulen, "Behavioral Criminal Law and Economics" (John M. Olin Program in Law and Economics Working Paper No. 440, 2008).