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Laws and Norms

Author

Listed:
  • Roland Bénabou

    (Princeton University)

  • Jean Tirole

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, IAST - Institute for Advanced Study in Toulouse)

Abstract

We analyze how private decisions and optimal public policies are shaped by personal and societal preferences, material incentives, and social norms. We show how honor and stigma interact with incentives and derive optimal taxation. We then analyze the expressive role of law as embodying society's values and identify when it calls for a weakening or a strengthening of incentives. The law should be softened when it signals agents' general willingness to contribute to the public good and toughened when it signals social externalities. We also shed light on norms-based interventions, societies' resistance to economists' messages, and the avoidance of cruel and unusual punishments.

Suggested Citation

  • Roland Bénabou & Jean Tirole, 2026. "Laws and Norms," Post-Print hal-05577272, HAL.
    • Handle: RePEc:hal:journl:hal-05577272
    DOI: 10.1086/738343
    Note: View the original document on HAL open archive server: https://hal.science/hal-05577272v1
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    References listed on IDEAS

    as
    1. Roberto Galbiati & Emeric Henry & Nicolas Jacquemet & Max Lobeck, 2021. "How laws affect the perception of norms: Empirical evidence from the lockdown," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-14, September.
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    4. Anastasia Danilov & Dirk Sliwka, 2017. "Can Contracts Signal Social Norms? Experimental Evidence," Management Science, INFORMS, vol. 63(2), pages 459-476, February.
    5. Bernheim, B Douglas, 1994. "A Theory of Conformity," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 841-877, October.
    6. Roberto Galbiati & Emeric Henry & Nicolas Jacquemet & Max Lobeck, 2021. "Executive summary of "How laws affect the perception of norms: Empirical evidence from the lockdown"," Post-Print halshs-05314972, HAL.
    7. Bar-Isaac Heski, 2012. "Transparency, Career Concerns, and Incentives for Acquiring Expertise," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 12(1), pages 1-15, January.
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