Grepperud, Sverre () (Institute of Health Management and Health Economics)
Abstract
Individuals often respond with strong emotions to being penalised. Such responses suggest that informal penalties are important and play a role in creating deterrence. In this paper informal penalties are analysed in the context of medical errors. The introduction of informal penalties, if dependent upon formal ones, implies that: (i) the optimal enforcement regime becomes more lenient, and in some cases the lack of formal punishment is preferred, (ii) the first-best solution becomes unattainable, (iii) liability rates and formal penalty level are no longer perfect deterrence substitutes. In addition, powers of informal penalties provide a rationale for administrative sanctions (informal criticism, reprimands and warnings).
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Publisher Info
Paper provided by Oslo University, Health Economics Research Programme in its series HERO On line Working Paper Series with number
2007:5.
Length: 32 pages Date of creation: 03 Jun 2009 Date of revision: Handle: RePEc:hhs:oslohe:2007_005
Contact details of provider: Postal: HERO / Institute of Health Management and Health Economics P.O. Box 1089 Blindern, N-0317 Oslo, Norway Phone: 2307 5309 Fax: 2307 5310 Email: Web page: http://www.hero.uio.no/eng.html More information through EDIRC
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Find related papers by JEL classification: D64 - Microeconomics - - Welfare Economics - - - Altruism I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health K32 - Law and Economics - - Other Substantive Areas of Law - - - Environmental, Health, and Safety Law K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
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