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Social and Behavioral Sciences Commons™

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Behavioral Economics

Notre Dame Law School

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Articles 1 - 6 of 6

Full-Text Articles in Social and Behavioral Sciences

If You Can't Beat Them, Join Them: Richard Posner And Behavioral Law And Economics, Avishalom Tor, Doran Teichman, Eyal Zamir Jan 2023

If You Can't Beat Them, Join Them: Richard Posner And Behavioral Law And Economics, Avishalom Tor, Doran Teichman, Eyal Zamir

Journal Articles

Since its publication in 1973, Economic Analysis of Law (the Treatise) by Richard Posner has been recognized as the canonical treatise in the field. Given this status, observing changes over time in the different editions of the book can highlight substantial and methodological shifts in the area. On this backdrop, this brief essay will highlight Posner's change of attitude towards behavioral analysis of law over the years, culminating with the incorporation of behavioral insights into the las edition of this book, published in 2024.

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Gender And Competitive Preferences: The Role Of Competition Size, Kathrin J. Hanek, Stephen M. Garcia, Avishalom Tor Jan 2016

Gender And Competitive Preferences: The Role Of Competition Size, Kathrin J. Hanek, Stephen M. Garcia, Avishalom Tor

Journal Articles

In a series of 8 studies, we examine whether gender differences in competition entry preferences are moderated by the size of the competition. Drawing on theories of gender roles and stereotypes, we show that women, relative to men, prefer to enter smaller compared with larger competitions. Studies 1a and 1b demonstrate this effect in observational data on preferences for working in differently-sized firms and applying to differently-sized colleges. Studies 2a and 2b replicate the effect with real behavioral decisions in different domains. We also find empirical evidence that prescriptive gender norms and stereotypes underlie this effect. In Study 3, we …

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Boundedly Rational Entrepreneurs And Antitrust, Avishalom Tor Jan 2016

Boundedly Rational Entrepreneurs And Antitrust, Avishalom Tor

Journal Articles

This article examines entrepreneurial activity and its implication for policy and antitrust law from a behavioral perspective. In particular, the analysis here focuses on the role of two sets of behavioral phenomena—overconfident beliefs and risk-seeking preferences—in facilitating boundedly rational entrepreneurship. Boundedly rational entrepreneurs may engage in entrepreneurial activity, such as the starting of new business ventures, under circumstances in which rational entrepreneurs would decline to do so. Consequently, overconfident or risk-seeking entrants compete with their more rational counterparts and create a post-entry landscape that differs markedly from the picture assumed by traditional economic accounts of entrepreneurial activity. The behaviorally informed …

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The Price Of Equality: Suboptimal Resource Allocations Across Social Categories, Stephen M. Garcia, Max H. Bazerman, Shirli Kopelman, Avishalom Tor, Dale T. Miller Jan 2010

The Price Of Equality: Suboptimal Resource Allocations Across Social Categories, Stephen M. Garcia, Max H. Bazerman, Shirli Kopelman, Avishalom Tor, Dale T. Miller

Journal Articles

This paper explores the influence of social categories on the perceived trade-off between a relatively bad but equal distribution of resources between two parties and a profit-maximizing yet unequal one. Studies 1 and 2 showed that people prefer to maximize profits when interacting within their social category, but chose not to maximize individual and joint profits when interacting across social categories. Study 3 demonstrated that outside observers, who were not members of the focal social categories, also were less likely to maximize profits when resources were distributed across social category lines. Study 4 showed that the transaction utility of maximizing …

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The N-Effect More Competitors, Less Competition, Stephen M. Garcia, Avishalom Tor Jan 2009

The N-Effect More Competitors, Less Competition, Stephen M. Garcia, Avishalom Tor

Journal Articles

This article introduces the N-effect—the discovery that increasing the number of competitors (N) can decrease competitive motivation. Studies 1a and 1b found evidence that average test scores (e.g., SAT scores) fall as the average number of test takers at test-taking venues increases. Study 2 found that individuals trying to finish an easy quiz among the top 20% in terms of speed finished significantly faster if they believed they were competing in a pool of 10 rather than 100 other people. Study 3 showed that the N-effect is strong among individuals high in social-comparison orientation and weak among those low in …

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Profit Maximization Versus Disadvantageous Inequality: The Impact Of Self-Categorization, Stephen M. Garcia, Avishalom Tor, Max H. Bazerman, Dale T. Miller Jan 2005

Profit Maximization Versus Disadvantageous Inequality: The Impact Of Self-Categorization, Stephen M. Garcia, Avishalom Tor, Max H. Bazerman, Dale T. Miller

Journal Articles

Choice behavior researchers (e.g., Bazerman, Loewenstein, & White, 1992) have found that individuals tend to choose a more lucrative but disadvantageously unequal payoff (e.g., self—$600/other—$800) over a less profitable but equal one (e.g., self—$500/other—$500); greater profit trumps interpersonal social comparison concerns in the choice setting. We suggest, however, that self-categorization (e.g., Hogg, 2000) can shift interpersonal social comparison concerns to the intergroup level and make trading disadvantageous inequality for greater profit more difficult. Studies 1–3 show that profit maximization diminishes when recipients belong to different social categories (e.g., genders, universities). Study 2 further implicates self-categorization, as selfcategorized individuals tend to …

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