Behavioural Economics and the EU Mediation Paradox: Moving Beyond Classical Law Economics: Rethinking Directive

Albeit mediation offers clear benefits, the European Union's Mediation Directive (Directive 2008/52/EC) has not successfully changed how cross-border disagreements are solved. More than ten years after the deadline for EU countries to introduce this law, European companies still rarely use mediation. Instead, most businesses still choose traditional court cases or arbitration. In this study based on human behaviour, Emmanuel Ladji Inga explains the main reason for this lack of progress, being the "EU commercial mediation paradox". He argues that the Directive was unsuccessful because it was based on incorrect theories from traditional law and economics. To connect legal rules with real human behaviour, this book suggests a new approach based on behavioural economics. Finally, the author suggests three practical solutions that could be included in future EU laws.