Public Law & Legal Theory
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.
Thomas S. Ulen & Richard H. McAdams, "Behavioral Criminal Law and Economics" (University of Chicago Public Law & Legal Theory Working Paper No. 244, 2008).