Abstract

http://ssrn.com/abstract=180117
 
 

Citations



 


 



A Fine is a Price


Uri Gneezy


University of California, San Diego (UCSD) - Rady School of Management

Aldo Rustichini


University of Minnesota - Twin Cities - Department of Economics


Journal of Legal Studies, Vol. 29, No. 1, January 2000

Abstract:     
The deterrence hypothesis predicts that the introduction of a penalty that leaves everything else unchanged will reduce the occurrence of the behavior subject to the fine. We present the result of a field study in a group of day-care centers that contradicts this prediction. Parents used to arrive late to collect their children, forcing a teacher to stay after closing time. We introduced a monetary fine for late-coming parents. As a result the number of late-coming parents increased significantly. After the fine was removed no reduction occurred. We argue that penalties are usually introduced into an incomplete contract, social or private. They may change the information that agents have and therefore the effect on behavior may be opposite than expected. If this is true, the deterrence hypothesis loses its predictive strength, since the clause 'everything else is left unchanged' might be hard to satisfy.

Accepted Paper Series





Not Available For Download

Date posted: September 8, 1999  

Suggested Citation

Gneezy, Uri and Rustichini, Aldo, A Fine is a Price. Journal of Legal Studies, Vol. 29, No. 1, January 2000. Available at SSRN: http://ssrn.com/abstract=180117

Contact Information

Uri Gneezy
University of California, San Diego (UCSD) - Rady School of Management ( email )
9500 Gilman Drive
Rady School of Management
La Jolla, CA 92093
United States
Aldo Rustichini (Contact Author)
University of Minnesota - Twin Cities - Department of Economics ( email )
271 19th Avenue South
Minneapolis, MN 55455
United States
Feedback to SSRN


Paper statistics
Abstract Views: 8,532

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.469 seconds