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Measuring and Minimizing Mistakes

In: An Introduction to Cognitive Economics

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  • Andrew Caplin

    (New York University)

Abstract

This chapter introduces cognitive legal studies and cognitive economic methods for measuring and minimizing decision-making mistakes using cognitive nudges. It outlines a case study that shows how adding an index to complex case files improved the quality of justice in Mexican labor arbitration courts in cases of unfair dismissal. It also indicates the need for cognitively-informed mandated disclosure regulations. It stresses how cognitively demanding is the Duty to Understand legal doctrine for complex online privacy disclosures and other sign-in-wrap contracts. It introduces experimental methods to test the effects of mandated disclosure regulations in reducing decision-making mistakes based on Bloom's educational taxonomy.

Suggested Citation

  • Andrew Caplin, 2025. "Measuring and Minimizing Mistakes," Springer Books, in: An Introduction to Cognitive Economics, chapter 0, pages 31-51, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-73042-9_3
    DOI: 10.1007/978-3-031-73042-9_3
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