IDEAS home Printed from https://ideas.repec.org/p/cra/wpaper/2005-17.html
   My bibliography  Save this paper

Achieving Compliance when Legal Sanctions are Non-Deterrent

Author

Listed:
  • Jean-Robert Tyran
  • Lars P. Feld

Abstract

Law backed by non-deterrent sanctions (mild law) has been hypothesized to achieve compliance because of norm activation. We experimentally investigate the effects of mild law in the provision of public goods by comparing it to severe law (deterrent sanctions) and no law. The results show that exogenously imposing mild law does not achieve compliance, but compliance is much improved if mild law is endogenously chosen, i.e. self-imposed. We show that voting for mild law induces expectations of cooperation, and that people tend to comply with the law if they expect many others to do so.

Suggested Citation

  • Jean-Robert Tyran & Lars P. Feld, 2005. "Achieving Compliance when Legal Sanctions are Non-Deterrent," CREMA Working Paper Series 2005-17, Center for Research in Economics, Management and the Arts (CREMA).
  • Handle: RePEc:cra:wpaper:2005-17
    as

    Download full text from publisher

    File URL: https://www.crema-research.ch/papers/2005-17.pdf
    File Function: Full Text
    Download Restriction: no

    File URL: https://www.crema-research.ch/abstracts/2005-17.htm
    File Function: Abstract
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bohnet, Iris & Cooter, Robert, 2001. "Expressive Law: Framing or Equilibrium Selection?," Berkeley Olin Program in Law & Economics, Working Paper Series qt5h6970h8, Berkeley Olin Program in Law & Economics.
    2. 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.
    3. Kahan, Dan M, 1998. "Social Meaning and the Economic Analysis of Crime," The Journal of Legal Studies, University of Chicago Press, vol. 27(2), pages 609-622, June.
    4. Lars P. Feld & Jean-Robert Tyran, 2002. "Why People Obey the Law: Experimental Evidence from the Provision of Public Goods," CESifo Working Paper Series 651, CESifo.
    5. 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.
    6. Kreps, David M. & Milgrom, Paul & Roberts, John & Wilson, Robert, 1982. "Rational cooperation in the finitely repeated prisoners' dilemma," Journal of Economic Theory, Elsevier, vol. 27(2), pages 245-252, August.
    7. Steven Shavell & A. Mitchell Polinsky, 2000. "The Economic Theory of Public Enforcement of Law," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 45-76, March.
    8. Joseph Farrell & Matthew Rabin, 1996. "Cheap Talk," Journal of Economic Perspectives, American Economic Association, vol. 10(3), pages 103-118, Summer.
    9. Cardenas, Juan Camilo & Stranlund, John & Willis, Cleve, 2000. "Local Environmental Control and Institutional Crowding-Out," World Development, Elsevier, vol. 28(10), pages 1719-1733, October.
    10. Cooter, Robert, 1998. "Expressive Law and Economics," The Journal of Legal Studies, University of Chicago Press, vol. 27(2), pages 585-608, June.
    11. Jordi Brandts & Gary Charness, 2000. "Hot vs. Cold: Sequential Responses and Preference Stability in Experimental Games," Experimental Economics, Springer;Economic Science Association, vol. 2(3), pages 227-238, March.
    12. 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.
    13. Posner, R.A. & Rasmusen, E., 1998. "Creating and Enforcing Norms, with Special Reference to Sanctions," Papers 98-005, Indiana - Center for Econometric Model Research.
    14. Robert Cooter, 1998. "Expressive Law and Economics," CESifo Working Paper Series 161, CESifo.
    15. 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.
    16. Waldfogel, Joel, 1994. "Does conviction have a persistent effect on income and employment?," International Review of Law and Economics, Elsevier, vol. 14(1), pages 103-119, March.
    17. Sunstein, Cass R & Schkade, David A & Kahneman, Daniel, 2000. "Do People Want Optimal Deterrence?," The Journal of Legal Studies, University of Chicago Press, vol. 29(1), pages 237-253, January.
    18. David Sally, 1995. "Conversation and Cooperation in Social Dilemmas," Rationality and Society, , vol. 7(1), pages 58-92, January.
    19. Sunstein, Cass R, 1999. "Behavioral Law and Economics: A Progress Report," American Law and Economics Review, American Law and Economics Association, vol. 1(1-2), pages 115-157, Fall.
    20. Ernst Fehr & Simon Gaechter, "undated". "Do Incentive Contracts Crowd out Voluntary Cooperation?," IEW - Working Papers 034, Institute for Empirical Research in Economics - University of Zurich.
    21. Bohnet, Iris & Frey, Bruno S. & Huck, Steffen, 2001. "More Order with Less Law: On Contract Enforcement, Trust, and Crowding," American Political Science Review, Cambridge University Press, vol. 95(1), pages 131-144, March.
    22. Klaus Abbink & Heike Hennig-Schmidt, 2006. "Neutral versus loaded instructions in a bribery experiment," Experimental Economics, Springer;Economic Science Association, vol. 9(2), pages 103-121, June.
    23. Tyran, Jean-Robert, 2004. "Voting when money and morals conflict: an experimental test of expressive voting," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1645-1664, July.
    24. Lott, John R, Jr, 1992. "Do We Punish High Income Criminals Too Heavily?," Economic Inquiry, Western Economic Association International, vol. 30(4), pages 583-608, October.
    25. R. Cookson, 2000. "Framing Effects in Public Goods Experiments," Experimental Economics, Springer;Economic Science Association, vol. 3(1), pages 55-79, June.
    26. Roberto Weber & Colin Camerer & Marc Knez, 2004. "Timing and Virtual Observability in Ultimatum Bargaining and “Weak Link” Coordination Games," Experimental Economics, Springer;Economic Science Association, vol. 7(1), pages 25-48, February.
    27. Elinor Ostrom, 2000. "Collective Action and the Evolution of Social Norms," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 137-158, Summer.
    28. Mueller,Dennis C. (ed.), 1997. "Perspectives on Public Choice," Cambridge Books, Cambridge University Press, number 9780521553773, September.
    29. Bardhan, Pranab, 2000. "Irrigation and Cooperation: An Empirical Analysis of 48 Irrigation Communities in South India," Economic Development and Cultural Change, University of Chicago Press, vol. 48(4), pages 847-865, July.
    30. Posner, Eric A, 1998. "Symbols, Signals, and Social Norms in Politics and the Law," The Journal of Legal Studies, University of Chicago Press, vol. 27(2), pages 765-798, June.
    31. Cooter, Robert, 1998. "Expressive Law and Economics," Berkeley Olin Program in Law & Economics, Working Paper Series qt3w34j60j, Berkeley Olin Program in Law & Economics.
    32. Huck, Steffen, 1998. "Trust, Treason, and Trials: An Example of How the Evolution of Preferences Can Be Driven by Legal Institutions," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 14(1), pages 44-60, April.
    Full references (including those not matched with items on IDEAS)

    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. Lars P. Feld & Jean-Robert Tyran, 2002. "Why People Obey the Law: Experimental Evidence from the Provision of Public Goods," CESifo Working Paper Series 651, CESifo.
    2. Fluet, Claude & Galbiati, Rpbertp, 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, Mars-Juin.
    3. Fehr, Ernst & Falk, Armin, 2002. "Psychological foundations of incentives," European Economic Review, Elsevier, vol. 46(4-5), pages 687-724, May.
    4. Bohnet, Iris & Cooter, Robert, 2001. "Expressive Law: Framing or Equilibrium Selection?," Berkeley Olin Program in Law & Economics, Working Paper Series qt5h6970h8, Berkeley Olin Program in Law & Economics.
    5. 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.
    6. Rustam Romaniuc & Katherine Farrow & Lisette Ibanez & Alain Marciano, 2016. "The perils of government enforcement," Public Choice, Springer, vol. 166(1), pages 161-182, January.
    7. 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.
    8. Galbiati, Roberto & Vertova, Pietro, 2008. "Obligations and cooperative behaviour in public good games," Games and Economic Behavior, Elsevier, vol. 64(1), pages 146-170, September.
    9. Riedel, Nadine & Schildberg-Hörisch, Hannah, 2013. "Asymmetric obligations," Journal of Economic Psychology, Elsevier, vol. 35(C), pages 67-80.
    10. Xiao, Erte, 2017. "Justification and conformity," Journal of Economic Behavior & Organization, Elsevier, vol. 136(C), pages 15-28.
    11. repec:spo:wpmain:info:hdl:2441/2k2jnd64aa9g19nja481vjohq3 is not listed on IDEAS
    12. Yoshinobu Zasu, 2007. "Sanctions by Social Norms and the Law: Substitutes or Complements?," The Journal of Legal Studies, University of Chicago Press, vol. 36(2), pages 379-396, June.
    13. Claudia Keser & Andreas Markstädter & Martin Schmidt, 2014. "Mandatory minimum contributions, heterogeneous endowments and voluntary public-good provision," CIRANO Working Papers 2014s-47, CIRANO.
    14. Keser, Claudia & Markstädter, Andreas & Schmidt, Martin, 2014. "Mandatory minimum contributions, heterogenous endowments and voluntary public-good provision," University of Göttingen Working Papers in Economics 224, University of Goettingen, Department of Economics.
    15. Rustam Romaniuc & Katherine Farrow & Lisette Ibanez & Alain Marciano, 2016. "The perils of government enforcement," Public Choice, Springer, vol. 166(1), pages 161-182, January.
    16. Irlenbusch, Bernd, 2004. "Relying on a man's word?: An experimental study on non-binding contracts," International Review of Law and Economics, Elsevier, vol. 24(3), pages 299-332, September.
    17. Bernasconi, Michele & Corazzini, Luca & Marenzi, Anna, 2013. "‘Expressive’ obligations in public good games: Crowding-in and crowding-out effects," Research in Economics, Elsevier, vol. 67(1), pages 13-24.
    18. repec:hal:spmain:info:hdl:2441/2k2jnd64aa9g19nja481vjohq3 is not listed on IDEAS
    19. Farrow, Katherine & Romaniuc, Rustam, 2019. "The stickiness of norms," International Review of Law and Economics, Elsevier, vol. 58(C), pages 54-62.
    20. Sebastian Kube & Christian Traxler, 2011. "The Interaction of Legal and Social Norm Enforcement," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(5), pages 639-660, October.
    21. Richard H. McAdams & Janice Nadler, 2005. "Testing the Focal Point Theory of Legal Compliance: The Effect of Third‐Party Expression in an Experimental Hawk/Dove Game," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 2(1), pages 87-123, March.
    22. Bowles, Samuel & Hwang, Sung-Ha, 2008. "Social preferences and public economics: Mechanism design when social preferences depend on incentives," Journal of Public Economics, Elsevier, vol. 92(8-9), pages 1811-1820, August.

    More about this item

    Keywords

    Deterrent effect of legal sanctions; Expressive law; Social norms; Public goods; Voting;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:cra:wpaper:2005-17. 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: Anna-Lea Werlen (email available below). General contact details of provider: https://edirc.repec.org/data/cremach.html .

    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.