IDEAS home Printed from https://ideas.repec.org/a/kap/pubcho/v166y2016i1d10.1007_s11127-016-0319-6.html
   My bibliography  Save this article

The perils of government enforcement

Author

Listed:
  • Rustam Romaniuc

    (Lille Catholic University, Maison des Chercheurs
    University of Montpellier, UMR 1135 LAMETA
    University of Turin - IEL)

  • Katherine Farrow

    (University of Montpellier, UMR 1135 LAMETA)

  • Lisette Ibanez

    (INRA, UMR 1135 LAMETA)

  • Alain Marciano

    (University of Montpellier, UMR 1135 LAMETA)

Abstract

An important part of the debate about self versus state-governance involves a discussion about enforcement mechanisms. While some scholars argue that private enforcement mechanisms work sufficiently well in supporting cooperation, others cite the downfalls of private mechanisms so as to legitimize government enforcement. This paper focuses on the interplay between government and private enforcement mechanisms. Using an experimental approach, we demonstrate two results. First, we show that government enforcement, in the form of a centralized monetary punishment in our experiment, can be useful if aligned with and implemented after a private form of enforcement, namely peer disapproval. However, our second result suggests that the removal of government enforcement leads to a substantial decrease in overall cooperation levels—cooperation levels are higher under private enforcement when subjects had never experienced government enforcement compared to when they had been exposed to government enforcement. Specifically, the removal of government enforcement undermines the power of the remaining private enforcement mechanism to affect the behavior of free-riders.

Suggested Citation

  • Rustam Romaniuc & Katherine Farrow & Lisette Ibanez & Alain Marciano, 2016. "The perils of government enforcement," Public Choice, Springer, vol. 166(1), pages 161-182, January.
    • Handle: RePEc:kap:pubcho:v:166:y:2016:i:1:d:10.1007_s11127-016-0319-6
    DOI: 10.1007/s11127-016-0319-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11127-016-0319-6
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11127-016-0319-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gneezy, Uri & Rustichini, Aldo, 2000. "A Fine is a Price," The Journal of Legal Studies, University of Chicago Press, vol. 29(1), pages 1-17, January.
    2. Posner, Richard A. & Rasmusen, Eric B., 1999. "Creating and enforcing norms, with special reference to sanctions1," International Review of Law and Economics, Elsevier, vol. 19(3), pages 369-382, September.
    3. Peter J. Boettke & Christopher J. Coyne & Peter T. Leeson, 2015. "Institutional stickiness and the New Development Economics," Chapters, in: Laura E. Grube & Virgil Henry Storr (ed.), Culture and Economic Action, chapter 6, pages 123-146, Edward Elgar Publishing.
    4. Greif, Avner, 1989. "Reputation and Coalitions in Medieval Trade: Evidence on the Maghribi Traders," The Journal of Economic History, Cambridge University Press, vol. 49(4), pages 857-882, December.
    5. Peter Leeson, 2014. "Pirates, prisoners, and preliterates: anarchic context and the private enforcement of law," European Journal of Law and Economics, Springer, vol. 37(3), pages 365-379, June.
    6. Cox, James C., 2004. "How to identify trust and reciprocity," Games and Economic Behavior, Elsevier, vol. 46(2), pages 260-281, February.
    7. Anastassios Karayiannis & Aristides Hatzis, 2012. "Morality, social norms and the rule of law as transaction cost-saving devices: the case of ancient Athens," European Journal of Law and Economics, Springer, vol. 33(3), pages 621-643, June.
    8. Romaniuc Rustam, 2016. "What Makes Law to Change Behavior? An Experimental Study," Review of Law & Economics, De Gruyter, vol. 12(2), pages 447-475, July.
    9. Peter Leeson, 2013. "Gypsy law," Public Choice, Springer, vol. 155(3), pages 273-292, June.
    10. Roland Benabou & Jean Tirole, 2011. "Laws and Norms," Working Papers 2011-2, Princeton University. Economics Department..
    11. Posner, R.A. & Rasmusen, E., 1998. "Creating and Enforcing Norms, with Special Reference to Sanctions," Papers 98-005, Indiana - Center for Econometric Model Research.
    12. Yuval Feldman, 2009. "The Expressive Function of Trade Secret Law: Legality, Cost, Intrinsic Motivation, and Consensus," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 6(1), pages 177-212, March.
    13. Jean Baptiste Fleury & Alain Marciano, 2014. "Order, Coordination, and Collective Action among the Undead," Post-Print hal-03678002, HAL.
    14. David Masclet & Charles Noussair & Steven Tucker & Marie-Claire Villeval, 2003. "Monetary and Nonmonetary Punishment in the Voluntary Contributions Mechanism," American Economic Review, American Economic Association, vol. 93(1), pages 366-380, March.
    15. JEAN-MICHEL Josselin & ALAIN Marciano, 1997. "The Paradox of Leviathan: How to Develop and Contain the Future European State?," European Journal of Law and Economics, Springer, vol. 4(1), pages 5-22, January.
    16. Claudia Keser & Frans Van Winden, 2000. "Conditional Cooperation and Voluntary Contributions to Public Goods," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(1), pages 23-39, March.
    17. Josselin, Jean-Michel & Marciano, Alain, 1995. "Constitutionalism and Common Knowledge: Assessment and Application to a Future European Constitution," Public Choice, Springer, vol. 85(1-2), pages 173-188, October.
    18. Patricia Funk, 2007. "Is There An Expressive Function of Law? An Empirical Analysis of Voting Laws with Symbolic Fines," American Law and Economics Review, American Law and Economics Association, vol. 9(1), pages 135-159.
    19. Peter T. Leeson, 2007. "Trading with Bandits," Journal of Law and Economics, University of Chicago Press, vol. 50(2), pages 303-321.
    20. Cooter, Robert, 1998. "Expressive Law and Economics," The Journal of Legal Studies, University of Chicago Press, vol. 27(2), pages 585-608, June.
    21. Goeree, Jacob K. & Holt, Charles A. & Laury, Susan K., 2002. "Private costs and public benefits: unraveling the effects of altruism and noisy behavior," Journal of Public Economics, Elsevier, vol. 83(2), pages 255-276, February.
    22. Jean-Michel Josselin & Alain Marciano, 2002. "The Making of the French Civil Code: An Economic Interpretation," European Journal of Law and Economics, Springer, vol. 14(3), pages 193-203, November.
    23. Ostrom, Elinor & Walker, James & Gardner, Roy, 1992. "Covenants with and without a Sword: Self-Governance Is Possible," American Political Science Review, Cambridge University Press, vol. 86(2), pages 404-417, June.
    24. Nikiforakis, Nikos, 2008. "Punishment and counter-punishment in public good games: Can we really govern ourselves," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 91-112, February.
    25. Simon Gachter & Ernst Fehr, 2000. "Cooperation and Punishment in Public Goods Experiments," American Economic Review, American Economic Association, vol. 90(4), pages 980-994, September.
    26. Peter T. Leeson, 2009. "The Laws of Lawlessness," The Journal of Legal Studies, University of Chicago Press, vol. 38(2), pages 471-503, June.
    27. Robert Cooter, 1998. "Expressive Law and Economics," CESifo Working Paper Series 161, CESifo.
    28. Benjamin Powell & Edward Stringham, 2009. "Public choice and the economic analysis of anarchy: a survey," Public Choice, Springer, vol. 140(3), pages 503-538, September.
    29. Ananish Chaudhuri, 2011. "Sustaining cooperation in laboratory public goods experiments: a selective survey of the literature," Experimental Economics, Springer;Economic Science Association, vol. 14(1), pages 47-83, March.
    30. Stringham, Edward Peter, 2015. "Private Governance: Creating Order in Economic and Social Life," OUP Catalogue, Oxford University Press, number 9780199365166, Decembrie.
    31. Russell S. Sobel & Brian J. Osoba, 2009. "Youth Gangs as Pseudo-Governments Implications for Violent Crime," Southern Economic Journal, John Wiley & Sons, vol. 75(4), pages 996-1018, April.
    32. Peter Leeson, 2009. "The calculus of piratical consent: the myth of the myth of social contract," Public Choice, Springer, vol. 139(3), pages 443-459, June.
    33. Fischbacher, Urs & Gachter, Simon & Fehr, Ernst, 2001. "Are people conditionally cooperative? Evidence from a public goods experiment," Economics Letters, Elsevier, vol. 71(3), pages 397-404, June.
    34. Cooter, Robert, 1998. "Expressive Law and Economics," Berkeley Olin Program in Law & Economics, Working Paper Series qt3w34j60j, Berkeley Olin Program in Law & Economics.
    35. Claudia Williamson, 2009. "Informal institutions rule: institutional arrangements and economic performance," Public Choice, Springer, vol. 139(3), pages 371-387, June.
    36. Peter T. Leeson & David B. Skarbek, 2010. "Criminal constitutions," Global Crime, Taylor & Francis Journals, vol. 11(3), pages 279-297, August.
    37. Andreoni, James & Gee, Laura K., 2012. "Gun for hire: Delegated enforcement and peer punishment in public goods provision," Journal of Public Economics, Elsevier, vol. 96(11), pages 1036-1046.
    38. Elster, Jon, 1989. "Social Norms and Economic Theory," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 99-117, Fall.
    39. Xiao, Erte & Houser, Daniel, 2011. "Punish in public," Journal of Public Economics, Elsevier, vol. 95(7), pages 1006-1017.
    40. Bernstein, Lisa, 1992. "Opting Out of the Legal System: Extralegal Contractual Relations in the Diamond Industry," The Journal of Legal Studies, University of Chicago Press, vol. 21(1), pages 115-157, January.
    41. Peter T. Leeson, 2007. "An-arrgh-chy: The Law and Economics of Pirate Organization," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 1049-1094, December.
    42. Russell S. Sobel & Brian J. Osoba, 2009. "Youth Gangs as Pseudo-Governments Implications for Violent Crime," Southern Economic Journal, Southern Economic Association, vol. 75(4), pages 996-1018, April.
    43. Engel, Christoph, 2014. "Social preferences can make imperfect sanctions work: Evidence from a public good experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 343-353.
    44. Menusch Khadjavi, 2015. "On the Interaction of Deterrence and Emotions," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 31(2), pages 287-319.
    45. Daniel Zizzo, 2010. "Experimenter demand effects in economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 13(1), pages 75-98, March.
    46. Gachter, Simon & Fehr, Ernst, 1999. "Collective action as a social exchange," Journal of Economic Behavior & Organization, Elsevier, vol. 39(4), pages 341-369, July.
    47. Peter T. Leeson, 2014. ""God Damn": The Law and Economics of Monastic Malediction," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 30(1), pages 193-216.
    48. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-548, June.
    49. Bicchieri,Cristina, 2006. "The Grammar of Society," Cambridge Books, Cambridge University Press, number 9780521574907, Enero-Abr.
    50. repec:wvu:wpaper:09-09 is not listed on IDEAS
    51. Edward Stringham (ed.), 2005. "Anarchy, State and Public Choice," Books, Edward Elgar Publishing, number 3741, December.
    52. James Andreoni & John Miller, 2002. "Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism," Econometrica, Econometric Society, vol. 70(2), pages 737-753, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grolleau, Gilles & Ibanez, Lisette & Mzoughi, Naoufel, 2020. "Moral judgment of environmental harm caused by a single versus multiple wrongdoers: A survey experiment," Ecological Economics, Elsevier, vol. 170(C).
    2. Farrow, Katherine & Romaniuc, Rustam, 2019. "The stickiness of norms," International Review of Law and Economics, Elsevier, vol. 58(C), pages 54-62.
    3. Florian Baumann & Sophie Bienenstock & Tim Friehe & Maiva Ropaul, 2023. "Fines as enforcers’ rewards or as a transfer to society at large? Evidence on deterrence and enforcement implications," Public Choice, Springer, vol. 196(3), pages 229-255, September.
    4. Shaun Larcom & Luca A. Panzone & Timothy Swanson, 2017. "Follow-the-leader? Measuring the internalisation of law," CIES Research Paper series 50-2017, Centre for International Environmental Studies, The Graduate Institute.
    5. Rustam Romaniuc & Dimitri Dubois & Eugen Dimant & Adrian Lupusor & Valeriu Prohnitchi, 2022. "Understanding cross-cultural differences in peer reporting practices: evidence from tax evasion games in Moldova and France," Public Choice, Springer, vol. 190(1), pages 127-147, January.
    6. Gregory DeAngelo & Matthew Gomies & Rustam Romaniuc, 2023. "Do civilian complaints against police get punished?," Public Choice, Springer, vol. 196(3), pages 453-482, September.
    7. Cécile Bazart & Dimitri Dubois & Kate Farrow & Lisette Ibanez & Alain Marciano & Nathalie Moureau & Rustam Romaniuc & Julie Rosaz & Sébastien Roussel, 2017. "NORMES : NORmes sociales, Motivations Externes et internes, et politiques publiqueS," Working Papers hal-02938187, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rustam Romaniuc & Katherine Farrow & Lisette Ibanez & Alain Marciano, 2016. "The perils of government enforcement," Public Choice, Springer, vol. 166(1), pages 161-182, January.
    2. Romaniuc Rustam, 2016. "What Makes Law to Change Behavior? An Experimental Study," Review of Law & Economics, De Gruyter, vol. 12(2), pages 447-475, July.
    3. Farrow, Katherine & Romaniuc, Rustam, 2019. "The stickiness of norms," International Review of Law and Economics, Elsevier, vol. 58(C), pages 54-62.
    4. Claude Denys Fluet & Roberto Galbiati, 2015. "Lois et normes : les enseignements de l’économie comportementale," CIRANO Working Papers 2015s-43, CIRANO.
    5. Claude Fluet & Rpbertp Galbiati, 2016. "Lois et normes : les enseignements de l'économie comportementale," L'Actualité Economique, Société Canadienne de Science Economique, vol. 92(1-2), pages 191-215.
    6. Sun, Huojun & Bigoni, Maria, 2018. "A fine rule from a brutish world? An experiment on endogenous punishment institution and trust," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 158-169.
    7. Xiao, Erte, 2013. "Profit-seeking punishment corrupts norm obedience," Games and Economic Behavior, Elsevier, vol. 77(1), pages 321-344.
    8. Daniel A. Brent & Lata Gangadharan & Anca Mihut & Marie Claire Villeval, 2019. "Taxation, redistribution, and observability in social dilemmas," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 21(5), pages 826-846, October.
    9. Leonid Krasnozhon & John Levendis, 2018. "Weekend racer: cheating and self-governance in road racing," Economics of Governance, Springer, vol. 19(1), pages 75-90, February.
    10. Peter Leeson, 2014. "Pirates, prisoners, and preliterates: anarchic context and the private enforcement of law," European Journal of Law and Economics, Springer, vol. 37(3), pages 365-379, June.
    11. Roth, M. Garrett & Skarbek, David, 2014. "Prison Gangs and the Community Responsibility System," Review of Behavioral Economics, now publishers, vol. 1(3), pages 223-243, May.
    12. Ernst Fehr & Tony Williams, 2017. "Social norms, endogenous sorting and the culture of cooperation," ECON - Working Papers 267, Department of Economics - University of Zurich, revised Apr 2018.
    13. Dal Bó, Ernesto & Dal Bó, Pedro, 2014. "“Do the right thing:” The effects of moral suasion on cooperation," Journal of Public Economics, Elsevier, vol. 117(C), pages 28-38.
    14. Xiao, Erte, 2017. "Justification and conformity," Journal of Economic Behavior & Organization, Elsevier, vol. 136(C), pages 15-28.
    15. Xiao, Erte & Houser, Daniel, 2011. "Punish in public," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 1006-1017, August.
    16. Skarbek, David, 2011. "Governance and Prison Gangs," American Political Science Review, Cambridge University Press, vol. 105(4), pages 702-716, November.
    17. Riedel, Nadine & Schildberg-Hörisch, Hannah, 2013. "Asymmetric obligations," Journal of Economic Psychology, Elsevier, vol. 35(C), pages 67-80.
    18. Skarbek, David, 2012. "Prison gangs, norms, and organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 96-109.
    19. Casoria, Fortuna & Galeotti, Fabio & Villeval, Marie Claire, 2021. "Perceived social norm and behavior quickly adjusted to legal changes during the COVID-19 pandemic," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 54-65.
    20. Benjamin Powell & Edward Stringham, 2009. "Public choice and the economic analysis of anarchy: a survey," Public Choice, Springer, vol. 140(3), pages 503-538, September.

    More about this item

    Keywords

    Self-governance; Private enforcement; Peer control; Government enforcement; Public goods;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:166:y:2016:i:1:d:10.1007_s11127-016-0319-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.