Cognitive Errors in Judicial Decision-Making from a Behavioral Law and Economics Perspective

Document Type : Scientific research

Authors

• Shahin Shamiaghdam ¹
• Gholam Reza Asadi ²

¹ Assistant Professor in Private Law, Department of Law, Islamic Azad University, Takestan, Iran.

² PhD Studdent in Private Law, Faculty of Law, Edalat University, Tehran, Iran.

https://doi.org/10.22067/economlaw.2025.92280.1428

Abstract

Judicial error is an unavoidable part of procedure. These errors make some political and economic effects. Legitimacy of government is the main political side of cognitive biases on the one hand and economic growth and development on the other hand are the main issues affected by the biases. Although these are shortcuts our brain made to form the way we make judgments and decisions in our daily lives but it makes false judgements. Cognitive studies demonstrate that biases such as framing effects, anchoring, hindsight bias, optimistic bias, endowment effect, omission bias, and extremes effect are the most important cognitive errors which form the way judicial decisions are made. We argue judicial errors are inevitable and may not be eliminated but efficient legal rules could reduce them and share risk of probable error among parties. In this paper we present routes, effects and solution of the issue from a behavioral law and economics approach.

Keywords

• Judicial bias
• cognitive bias
• judicial decision making
• behavioral law and economics

Main Subjects

• Economic Analysis of Law

References

[1] Aboutalebdoght Shouraki, M., Khalilian Eshkezari, M., & Tavakoli, M. (2020, Spring & Summer). A -Comparative Study of Aims of Consumer in Islamic Economics and Mainstream Economics. Knowledge of Islamic Economics, 42. )in persian)

[2] Babayi, A. (2019, Spring & Summer). Civil Liability Law and Non-Contractual Obligations. Tehran: Mizan Publishing. )in persian)

[3] Davarpanah, M. (2005, Spring). Interdisciplinary Relations in Human Sciences: A Citation Analysis. Educational and Psychological Studies, 17–36. )in persian)

[4] Ebrahimi, M., Meydari, A., & Haji, M. (Spring). The Effects of Judicial Process on Economic Growth of D8 Countries. Economic Researches & Policies, 33–60. )in persian)

[5] Ghani Nezhad, M. (1986, November). Keynesian Revolution and Contemporary Economic Thought. Keyhan-e-Farhangi, 33, 17–19. )in persian)

[6] Ghamami, M., & Mohseni, H. (2017). Transnational Civil Procedure. Tehran: Sherkat Sahami Enteshar. )in persian)

[7] Gorji, A., & Madani, Sh. (2015, Autumn). An Evaluation of the Evolution from Classical to Neo-Classical and then New-Classical Schools: How New Are the New-Classicals? Economic Research, 31–68. )in persian)

[8] Hassas Yeganeh, Y. (2006, Autumn & Winter). Challenges of Professional Judgment in Auditing. Official Accountant, 29–40. )in persian)

[9] Haji Zadeh, M., Nezhadi Manesh, H., & Zarei, M. (2017, Spring). The Status of the Rule of Law in International Law. Public Law Research, 171–196. )in persian)

[10] Hashemi, S., & Ghaffari, H. (2011, Summer). Reconsidering Formal and Substantive Interpretations of the Rule of Law. Legal Research, 5, 335–366. )in persian)

[11] Hesar Khani, F., & Pourostad, M. (2015, Summer). Economic Analysis of Civil Procedure Based on Costs. Iranian & International Comparative Legal Research Quarterly, 8, 57–85. )in persian)

[12] Khoshtinat, M., & Bostanian, J. (2007, Summer). Professional Judgment in Auditing. Experimental Studies of Financial Accounting, 18, 25–58. )in persian)

[13] Mohaghegh Damad, S. (2009, Autumn & Winter). Shiite Ijtihad Developments: Schools, Domains and Methods (4): Taklifi and Waz’i Rulings in the Thought of Mohaqqiq Khorasani. Legal Research Journal, 50, 25–48. Retrieved from https://www.noormags.ir/view/fa/articlepage/563445 )in persian)

[14] Naseri, A., & Ahmad-Ali Zadeh, A. (2015, Winter). The Effect of Perception Bias of Audit Report Users on Their Evaluation of Auditor's Decisions. Accounting Studies, 9, 109–124. )in persian)

[15] Nasiri Aghdam, A. (2006, Spring & Summer). Transaction Cost Economics. Economic Essays, 157–208. )in persian)

[16] Nikbakht, H. (1997, Spring). Effects of Force Majeure and Contract Termination. International Legal Journal, 97–126. )in persian)

[17] Nouri Savadkouhi Far, S. (2001, Feb-Mar). A Comparative Study on the Legitimacy of Judges in the Legal System of the Islamic Republic of Iran and Other Systems. Dadresi, 30, 23. )in persian)

[18] Seifi Zeinab, Gh., & Amiraghdam, R. (2016, Spring & Summer). A Comparative Study of Judicial Precedent Criticism in Securing Legal and Economic Security in Iran and Egypt. Jurisprudential Foundations of Islamic Law, 157–191. )in persian)

[19] Shoari Nejad, A. (1996). Dictionary of Behavioral Sciences. Tehran: Amir Kabir Publishing. )in persian)