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Social influence and economic incentives: Complements or substitutes?—The case of fighting crimes

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  • Xu, Chenyang
  • Veld, Klaas van ’t

Abstract

When policy makers can both use economic incentives and nudge social influence to alter individual behavior, an open question is: are these instruments substitutes or complements? Within a crime framework, we show that they can be either. We distinguish this result from the “social multiplier” effect in the literature.

Suggested Citation

  • Xu, Chenyang & Veld, Klaas van ’t, 2019. "Social influence and economic incentives: Complements or substitutes?—The case of fighting crimes," Economics Letters, Elsevier, vol. 180(C), pages 80-84.
    • Handle: RePEc:eee:ecolet:v:180:y:2019:i:c:p:80-84
    DOI: 10.1016/j.econlet.2019.04.014
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    References listed on IDEAS

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    More about this item

    Keywords

    Social influence; Enforcement; Crimes; Substitutes; Complements;
    All these keywords.

    JEL classification:

    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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