Trading is more than a personal valuation of own property. Traders try to anticipate the WTP potential buyers have for the good they want to sell. They do not focus on the value the entitlement has for them, their personal valuation is only a reservation price. The law analyzes the Endowment...

Strategies based in behavioral economics have quickly gained major importance in shaping public policy, most notably in the form of "nudges" that promise to promote, but not to force, socially-productive choices at low cost. Nudging interventions typically presume some asymmetry of...

Most Endowment Effect studies incentivize individuals to reveal their true valuation when selling their entitlement. This experimental design can mislead the legal debate because it fo-cuses sellers` attention on their endowment and thereby elevates the size of their bias. In our study, we place...

Recent research in experimental law and economics shows that the imposition of a fine, intended to deter some harmful behavior, may crowd out moral motivation: the behavior occurs more frequently even though a payment is charged to discourage it. In A Fine is a Price, Gneezy and Rustichini...