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Social Norms, Self-Interest and Ambiguity of Legal Norms: An Experimental Analysis of the Rule vs. Standard Dilemma

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Author Info
Yuval Feldman (Bar-Ilan University)
Alon Harel (Hebrew University)

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Abstract

The influence of social norms on the willingness to obey legal norms depends on contingencies that have not been investigated. Theoretical, behavioral, and experimental considerations investigated in this paper establish the differential behavioral effects of legal rules and standards. The findings of experiments conducted by us indicate that in the absence of information concerning social norms, rules and standards have similar effects on compliance. In contrast, rules and standards have differential effects on compliance when they interact with social norms. Furthermore, it was found that social norms of noncompliance had a much greater effect than social norms of compliance. A second study demonstrated a similar relationship between self-interest and legal ambiguity, corroborating the theoretical mechanisms we have argued for, based on the findings of the first study. The implications of these findings to legal policy-making are discussed.

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Publisher Info
Article provided by Berkeley Electronic Press in its journal Review of Law & Economics.

Volume (Year): 4 (2008)
Issue (Month): 1 ()
Pages: 6
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Handle: RePEc:bep:rlecon:4:2008:1:6

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Related research
Keywords: social norms rules vs. standards self interest motivated reasoning optimal regulation behavioral economics

References listed on IDEAS
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  1. Cooter, Robert & Porat, Ariel, 2001. "Should Courts Deduct Nonlegal Sanctions from Damages?," Journal of Legal Studies, University of Chicago Press, vol. 30(2), pages 401-22, Part I Ju.
  2. Peter Alexander, 2002. "Peer-to-Peer File Sharing: The Case of the Music Recording Industry," Review of Industrial Organization, Springer, vol. 20(2), pages 151-161, March. [Downloadable!] (restricted)
  3. Thompson, Leigh & Loewenstein, George, 1992. "Egocentric interpretations of fairness and interpersonal conflict," Organizational Behavior and Human Decision Processes, Elsevier, vol. 51(2), pages 176-197, March. [Downloadable!] (restricted)
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  5. Rafael Rob & Joel Waldfogel, 2004. "Piracy on the High C's: Music Downloading, Sales Displacement, and Social Welfare in a Sample of College Students," NBER Working Papers 10874, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Boiney, Lindsley G. & Kennedy, Jane & Nye, Pete, 1997. "Instrumental Bias in Motivated Reasoning: More When More Is Needed," Organizational Behavior and Human Decision Processes, Elsevier, vol. 72(1), pages 1-24, October. [Downloadable!] (restricted)
  7. Bernstein, Lisa, 1992. "Opting Out of the Legal System: Extralegal Contractual Relations in the Diamond Industry," Journal of Legal Studies, University of Chicago Press, vol. 21(1), pages 115-57, January.
  8. Chen, Xiao-Ping, 1996. "The Group-Based Binding Pledge as a Solution to Public Goods Problems," Organizational Behavior and Human Decision Processes, Elsevier, vol. 66(2), pages 192-202, May. [Downloadable!] (restricted)
  9. Hsee, Christopher K., 1995. "Elastic Justification: How Tempting but Task-Irrelevant Factors Influence Decisions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 62(3), pages 330-337, June. [Downloadable!] (restricted)
  10. Mulvey, Paul W. & Klein, Howard J., 1998. "The Impact of Perceived Loafing and Collective Efficacy on Group Goal Processes and Group Performance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 74(1), pages 62-87, April. [Downloadable!] (restricted)
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