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Behavioral Equity

Author

Listed:
  • Yuval Feldman
  • Henry E. Smith

Abstract

The paper uses the findings of psychology, behavioral economics, and behavioral ethics to revisit three main related assumptions of the rational-choice approach to equity, by developing three main points: first, not only bad people try to circumvent the law; second, behavior depends on the relationship between specificity, trust, and the type of motivation triggered; and, third, moral priming has different effects on good and on bad people. Based on these three modifications of rational-choice assumptions about the law-versus-equity distinction, we offer a dynamic acoustic separation model that attempts to examine the effect of law versus equity on both good and bad people.

Suggested Citation

  • Yuval Feldman & Henry E. Smith, 2014. "Behavioral Equity," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 170(1), pages 137-159, March.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201403)170:1_137:be_2.0.tx_2-c
    DOI: 10.1628/093245613X13871984730889
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    More about this item

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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