Economic and Behavioural Analysis of Contract Law

Course of studies: Master of Law 

VZZ No.:5356 

Dates:  4 - 25 November 2026

Lecturer: Prof. Eyal Zamir (Hebrew University of Jerusalem)

Time / Location:

• Wednesday, 14:00 -15:45 / room: PLD-E-04, except on 11 November 2026, room: KOL-G-221 
• Friday, 10:15 - 12:00 / room: HAH-E-10 

Exam Date: Wednesday,  9 December 2026,  14:00 - 15:45 / room: HAH-E-10

Classes and the examination will be conducted in English.

Students are asked to join the OLAT Cours for reading materials and updates. The syllabus can be downloaded here (PDF, 122 KB).

Over the past five decades or so, economic analysis has become the leading interdisciplinary perspective in contract law theory. Based on simplifying assumptions about human motivation and decision-making, it has challenged long-held beliefs and produced fascinating new insights. Economists have never claimed that the postulates of economic rationality precisely depict reality—only that they provide a sufficiently accurate approximation to yield useful explanations, predictions, and policy recommendations.

More recently, a wealth of behavioral studies has demonstrated that deviations from the assumptions of economic rationality are both significant and systematic. Initially, mainstream economics sought to deny the validity and generality of these behavioral findings. But, as often happens when a theory fails to overcome new challenges, economic analysis gradually incorporated behavioral insights. This is especially true in the economic analysis of law, where scholars are relatively more concerned with influencing real-world behavior than with abstract modeling.

The course will introduce the basic tenets of the economic analysis of contract law and its central behavioral findings. It will apply economic tools and psychological insights to examine key issues in contract law, such as pre-contractual disclosure duties, default rules, regulation of the contracting process and transaction content, and remedies for breach of contract. No prior knowledge of economics or psychology is assumed. 

The examination will take place on Wednesday, 9 December 2026, from 14:00 to 15:45 in room HAH-E-10.

It will be a written, proctored examination, graded pass/fail.