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Psychology and Institutional Design

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  • Tyler Tom

    (New York University)

Abstract

I argue for the usefulness of a value-based approach to legal regulation. The value-based approach designs institutions in ways that promote the development of values such as legitimacy. Such a development of values encourages people to follow the rules because they believe they ought to, rather than out of fear of punishment. I suggest that the deterrence approach has limits and that the values-based model is a more efficient and effective basis for encouraging people to bring their behavior into line with law and legal institutions.

Suggested Citation

  • Tyler Tom, 2008. "Psychology and Institutional Design," Review of Law & Economics, De Gruyter, vol. 4(3), pages 801-887, December.
    • Handle: RePEc:bpj:rlecon:v:4:y:2008:i:3:n:6
    DOI: 10.2202/1555-5879.1233
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    References listed on IDEAS

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    1. Bruno S. Frey, 1994. "How Intrinsic Motivation is Crowded out and in," Rationality and Society, , vol. 6(3), pages 334-352, July.
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    Cited by:

    1. Wendelin Schnedler & Radovan Vadovic, 2011. "Legitimacy of Control," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 20(4), pages 985-1009, December.
    2. Prinz, Aloys & Muehlbacher, Stephan & Kirchler, Erich, 2014. "The slippery slope framework on tax compliance: An attempt to formalization," Journal of Economic Psychology, Elsevier, vol. 40(C), pages 20-34.
    3. Gilles Grolleau & Murat C Mungan & Naoufel Mzoughi, 2025. "Perceptions of Justice: Assessing the Perceived Effectiveness of Punishments by Artificial Intelligence versus Human Judges," Post-Print hal-04854067, HAL.
    4. Tom Tyler & David Markell, 2010. "The Public Regulation of Land‐Use Decisions: Criteria for Evaluating Alternative Procedures," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 7(3), pages 538-573, September.
    5. van der Weele Joël, 2012. "Beyond the State of Nature: Introducing Social Interactions in the Economic Model of Crime," Review of Law & Economics, De Gruyter, vol. 8(2), pages 401-432, October.

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