Abstract
This article aims to clarify the relationship between the law and social norms and examine how they interact – whether the law completely replaces, or coexists with, the pre-existing social norms. We model a close-knit society consisting of injurers and victims, assuming that both the law and social norms maximize social welfare and that the costs of enforcing legal penalties are greater than those of enforcing social norms. We find that social norms completely replace the law, even in a non-cooperative Nash equilibrium; we then develop exceptions to this result. In particular, when community sanctions for violating social norms are calibrated without consideration of its marginal social benefit due to a reduction in law enforcement cost, our model can have multiple equilibria, including cases in which legal sanctions persist even in the long run, in spite of their inefficiently high enforcement costs. However, we also show that this possibility of an inefficient non-cooperative equilibrium can be eliminated if the government behaves as a Stackelberg leader for the formation of social norms.
Funding statement: Funding: This research is financially supported by Grant-in-Aid for Scientific Research No. 26490046 from the Japan Society for the Promotion of Science.
Acknowledgements
The authors are deeply grateful for the detailed comments and insightful suggestions of the reviewer, which helped in the completion of this article. We also thank David Flath for his many comments and suggestions, as well as Tomotaka Fujita, Takeshi Fujitani, and Wataru Tanaka for their comments.
References
Ellickson, R.C. 1986. “Of Coase and Cattle: Dispute Resolution Among Neighbors in Shasta County,” 38 Stanford Law Review 623–688.10.2307/1228561Suche in Google Scholar
Ellickson, R.C. 1991. Order Without Law: How Neighbors Settle Disputes. Cambridge, MA: Harvard University Press.10.4159/9780674036437Suche in Google Scholar
Kaplow, L. and S. Shavell. 2002. Fairness Versus Welfare. Cambridge, MA: Harvard University Press.10.4159/9780674039315Suche in Google Scholar
Landes, W.M. and R.A. Posner. 1987. The Economic Structure of Tort Law. Cambridge, MA: Harvard University Press.10.4159/harvard.9780674864030Suche in Google Scholar
Macaulay, S. 1963. “Non-Contractual Relations in Business: A Preliminary Study,” 27 American Sociological Review 55–70.10.2307/2090458Suche in Google Scholar
McAdams, R.H. and E.B. Rasmusen. 2007. “Norms and the Law,” 1573–1618,” in A.M. Polinsky and S. Shavell, eds. Handbook of Law and Economics vol. 2. Amsterdam: North-Holland.10.1016/S1574-0730(07)02020-8Suche in Google Scholar
Posner, R.A. 1981. The Economics of Justice. Cambridge, MA: Harvard University Press.Suche in Google Scholar
Posner, E.A. 1996. “The Regulation of Groups: The Influence of Legal and Nonlegal Sanctions on Collective Action,” 63 The University of Chicago Law Review 133–197.10.2307/1600068Suche in Google Scholar
Posner, E.A. 2000. Law and Social Norm. Cambridge, MA: Harvard University Press.Suche in Google Scholar
Posner, R.A. 1999. “Social Norm and the Law: An Economic Approach,” 87 American Economic Review 365–369.Suche in Google Scholar
Posner, R.A. and E.B. Rasmussen. 1999. “Creating and Enforcing Norms, with Special Reference to Sanctions,” 19 International Review of Law and Economics 369–382.10.1016/S0144-8188(99)00013-7Suche in Google Scholar
Shavell, S. 2002. “Law Versus Morality as Regulators of Conduct,” 4 American Law and Economics Review 227–257.10.1093/aler/4.2.227Suche in Google Scholar
Zasu, Y. 2007. “Sanctions by Social Norm and the Law: Substitutes or Complements?” 36 Journal of Legal Studies 379–396.10.1086/511896Suche in Google Scholar
©2015 by De Gruyter
Artikel in diesem Heft
- Frontmatter
- Sentencing Discounts, Attorney Compensation and Plea Bargaining in Criminal Cases
- Optimal Marginal Deterrence and Incentives for Precaution
- The Deterrence Effects of Gun Laws in Games with Asymmetric Skills and Information
- Decomposition of Accident Loss and Efficiency of Liability Rules
- Day-Fines: Should the Rich Pay More?
- On the Complementarity between Law and Social Norms
- Can Decoupling Punitive Damages Deter an Injurer’s Harmful Activity?
Artikel in diesem Heft
- Frontmatter
- Sentencing Discounts, Attorney Compensation and Plea Bargaining in Criminal Cases
- Optimal Marginal Deterrence and Incentives for Precaution
- The Deterrence Effects of Gun Laws in Games with Asymmetric Skills and Information
- Decomposition of Accident Loss and Efficiency of Liability Rules
- Day-Fines: Should the Rich Pay More?
- On the Complementarity between Law and Social Norms
- Can Decoupling Punitive Damages Deter an Injurer’s Harmful Activity?