This article makes an admittedly bold attempt at outlining an analytical framework for addressing this question. Instead of looking at the legal implications of bounded rationality -- an exercise highly worthy in its own right -- this article advances a theory of expanded rationality. This theory retains the element of rationality in that people respond to incentives in an attempt to attain utility, and it does not question the observation that decision-making is often bounded due to various factors.
Amir N. Licht,
Law for the Common Man: An Individual-Level Theory of Values, Expanded Rationality, and the Law ,
74 Law and Contemporary Problems
Available at: http://scholarship.law.duke.edu/lcp/vol74/iss2/8