Laws and Norms

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Show simple item record BENABOU, Roland TIROLE, Jean 2011-07-14T09:54:00Z 2011-07-14T09:54:00Z 2011-01-01
dc.identifier.issn 1830-7736
dc.description The lecture was delivered on 16 February 2011. First draft: October 2010. This version: February 2011. en
dc.description.abstract This paper analyzes how private decisions and public policies are shaped by personal and societal preferences ("values"), material or other explicit incentives ("laws") and social sanctions or rewards ("norms"). It first examines how honor, stigma and social norms arise from individuals' behaviors and inferences, and how they interact with material incentives. It then characterizes optimal incentivesetting in the presence of norms, deriving in particular appropriately modified versions of Pigou and Ramsey taxation. Incorporating agents' imperfect knowledge of the distribution of preferences opens up to analysis several new questions. The first is social psychologists' practice of "norms-based interventions", namely campaigns and messages that seek to alter people's perceptions of what constitutes "normal" behavior or values among their peers. The model makes clear how such interventions operate, but also how their effectiveness is limited by a credibility problem, particularly when the descriptive and prescriptive norms conflict. The next main question is the expressive role of law. The choices of legislators and other principals naturally reflect their knowledge of societal preferences, and these same "community standards" are also what shape social judgements and moral sentiments. Setting law thus means both imposing material incentives and sending a message about society's values, and hence about the norms that different behaviors are likely to encounter. The analysis, combining an informed principal with individually signaling agents, makes precise the notion of expressive law, determining in particular when a weakening or a strengthening of incentives is called for. Pushing further this logic, the paper also sheds light on why societies are often resistant to the message of economists, as well as on why they renounce certain policies, such as "cruel and unusual punishments", irrespective of effectiveness considerations, in order to express their being "civilized". en
dc.format.mimetype application/pdf
dc.language.iso en en
dc.relation.ispartofseries EUI MWP LS en
dc.relation.ispartofseries 2011/05 en
dc.rights info:eu-repo/semantics/openAccess en
dc.subject motivation en
dc.subject incentives en
dc.subject esteem en
dc.subject reputation en
dc.subject honor en
dc.subject stigma en
dc.subject social norms en
dc.subject culture en
dc.subject taxation en
dc.subject law en
dc.subject punishments en
dc.subject norms-based interventions en
dc.subject expressive content en
dc.title Laws and Norms en
dc.type Other en
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