Overview

Seduction by Contract explains how consumer contracts emerge from market forces and consumer psychology. Consumers' predictable mistakes - they are short-sighted, optimistic, and imperfectly rational - compel sellers to compete by hiding the true costs of products in complex, misleading contracts. Only better law can overcome the market's failure.

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9780199663378

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Reviews

What makes Bar-Gills argument both fresh and impressive is its detailed exploration of actual consumer markets and its careful argument that myopia, unrealistic optimism, and a lack of salience are playing a significant role in those markets. Cass Sunstein, The New Republic Exceptionally illuminating and packed with findings and ideas. Seduction By Contract is important reading for those interested in behavioral economics, human behavior, and some of the most important policy debates of the current decade. Cass R. Sunstein, Felix Frankfurter Professor of Law, Harvard Law School and former Administrator, White House Office of Information and Regulatory Affairs Professor Bar-Gill, a pioneer in the injection of psychological realism into economic analysis of law, has written a very timely and very important book on consumer contracts, and specifically on the ominous ingenuity with which modern marketers exploit the incapacity of so many consumers to understand complex contractual terms, especially relating to credit. His book will inform administrative and judicial regulation of consumer contracts. Judge Richard A. Posner This book shows why Oren Bar-Gill was the first winner of the American Law Institute's Young Scholars Medal. Economics and psychology are melded to explain legal reforms that would improve the contractual rights of consumers who obtain credit cards, mortgages, or cell phones. This is first-class legal scholarship that can influence public policy. Lance Leibman, Director, American Law Institute As Oren Bar-Gill's designated rational choice nemesis, I applaud his ambitious efforts to account for the role of human error in the full range of consumer transactions. His bold claim that product and service providers, even in competitive markets, are able to manipulate the terms of standard form contracts to their private advantage, if sustainable, creates a prima facie case for government regulation of these consumer markets. Bar-Gill's work promises to be at the center of a continuing debate of national importance. Richard Epstein, Laurence A. Tisch Professor of Law, New York University School of Law Oren Bar-Gill argues that consumer contracts are often both inefficient and exploitative in predictable ways, and illustrates with case studies. The claim is provocative but plausible, and the analysis addresses many of an economist's follow-on questions. I look forward to teaching from this book. Joseph V. Farrell, Professor of Economics, University of California, Berkeley

Author Information

Oren Bar-Gill is a Professor of Law and co-Director of the Center for Law, Economics and Organization at the New York University School of Law. Bar-Gill joined the NYU faculty in January 2005 from Harvard University, where he was a Fellow at the Society of Fellows, as well as an Olin Fellow at Harvard Law School. Bar-Gill holds a B.A. (economics), LL.B., M.A. (law & economics), and Ph.D. (economics) from Tel-Aviv University, as well as an LL.M. and S.J.D. from Harvard Law School. Bar-Gill's scholarship focuses on the law and economics of contracts. His more than 30 articles have been published in leading law reviews and peer-reviewed journals. In 2011, Bar-Gill's work on consumer contracts was recognized by the American Law Institute, which awarded him its inaugural Young Scholar Medal. Bar-Gill is currently a co-Reporter for the American Law Institute's project on the Law of Consumer Contracts. Bar-Gill is a member of the Board of Directors of the American Law and Economics Association. He advises both government agencies and private sector parties on issues pertaining to consumer contracts and consumer protection.

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