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The Rewards of PunishmentA Relational Theory of Norm Enforcement$
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Christine Horne

Print publication date: 2009

Print ISBN-13: 9780804760218

Published to Stanford Scholarship Online: June 2013

DOI: 10.11126/stanford/9780804760218.001.0001

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Norms, Laws, and Markets

Norms, Laws, and Markets

Implications for Policy

Chapter:
(p.104) 7 Norms, Laws, and Markets
Source:
The Rewards of Punishment
Publisher:
Stanford University Press
DOI:10.11126/stanford/9780804760218.003.0007

This chapter argues that norms do not exist in a vacuum, but, rather, operate side by side with government penalties and market incentives. Norms are often overlooked as a source of solutions to social problems, however. Further, policy interventions based on governments or markets may have unintended effects on norms. The chapter describes one way of thinking about the relation between norms and law and between norms and markets, and describes an experimental test of the predictions regarding the effect of a strong legal system on social relations. It cites an example of how recognizing the power of social norms might affect the way people think about policy, focusing in particular on education.

Keywords:   government penalties, market incentives, social problems, strong legal system

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