University of Chicago Law School Chicago Unbound Journal Articles Faculty Scholarship 1997 Rational Choice, Behavioral Economics, and the Law Richard A. Posner Follow this and additional works at: https://chicagounbound.uchicago.edu/journal_articles Part of the Law Commons Recommended Citation Richard A. Posner, "Rational Choice, Behavioral Economics, and the Law," 50 Stanford Law Review 1551 (1997). This Article is brought to you for free and open access by the Faculty Scholarship at Chicago Unbound. It has been accepted for inclusion in Journal Articles by an authorized administrator of Chicago Unbound. For more information, please contact
[email protected]. Rational Choice, Behavioral Economics, and the Law Richard A. Posner* INTRODUCTION Jolls, Sunstein, and Thaler wish to use the insights of behavioral eco- nomics to improve economic analysis of law, which they believe to be handicapped by its commitment to the assumption that people are rational.1 The editors of the Review have asked me to comment on JST's paper, no doubt because of my identification with rational-choice economics. Since JST complain with some justice that economists and economically minded lawyers do not always make clear what they mean by "rationality," let me make clear at the outset what I mean by the word: choosing the best means to the chooser's ends. For example, a rational person who wants to keep warm will compare the alternative means known to him of keeping warm in terms of cost, comfort, and other dimensions of utility and disutility, and will choose from this array the means that achieves warmth with the greatest margin of benefit over cost, broadly defined.