ARE ALL CONTRACTUAL OBLIGATIONS CREATED EQUAL.docVIP

Are all contractual Obligations Created Equal? By Yuval Feldman Doron Teichman* At the core of the economic analysis of contract law lies the concept of options. According to this concept, parties are expected to perform their contractual duties if, and only if, the legal price of breach (i.e. damages) is higher than the cost of performance. This Article challenges this concept, and shows that peoples’ performance decisions are driven by non-instrumental forces such as moral commitments, social norms, and motivated reasoning. To demonstrate this point, this Article presents a series of thr