'A Fine is Not a Price': Insights for Law
Ideology, Psychology, and Law (Jon Hansen ed., 2012)
13 Pages Posted: 22 Jan 2014
Date Written: January 1, 2012
Barry Schwartz's work presents empirical evidence that challenges core precepts of modern legal analysis. With the rise of law and economics in the last generation, financial incentives have become, in many legal fields (including taxation), the default mechanism for understanding and changing human behavior.
In this comment, I outline three challenges that Schwartz’s work poses for the use of financial incentives in law. Along the way, I highlight open questions and suggest how Schwartz’s findings might motivate new and constructive possibilities for legal design.
Keywords: incentives, social psychology, taxation, law and economics
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