Zamir, Eyal; Ritov, Ilana - In: The Journal of Legal Studies 39 (2010) 1, pp. 245-288
Building on Kahneman and Tversky's prospect theory, this paper presents a series of experiments designed to reveal people's preferences regarding attorneys' fees. Contrary to common economic wisdom, it demonstrates that loss aversion (rather than risk aversion or incentivizing the lawyer to win...