Conceptions of rationality in law and economics

Veetil, Vipin P.

doi:10.1007/s10657-009-9137-3

Cited by 7 publications

(6 citation statements)

References 14 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The traditional economics of compliance based on rational choice assumes that agents rationally and self-interestedly strive only for profit (Becker, 1968;Veetil, 2011); that is, people are assumed to calculate and weigh the material costs and benefits of rule-breaking without taking moral norms into account. Accordingly, policy measures aimed at promoting compliance focus on enforcement measures, such as monitoring and sanctioning, that reduce economic temptations and deter rule-breaking.…”

Section: Problem Backgroundmentioning

confidence: 99%

Can personality traits explain compliance behaviour? - A study of compliance with water-protection rules in German agriculture

Funke¹,

Hirschauer²,

Peth³

et al. 2019

Preprint

View full text Add to dashboard Cite

Going beyond the rational choice approach used in conventional economics of crime, the question arises whether psychological personality traits analysis can contribute to a better understanding of non-compliance and, eventually, to the prevention of illicit behaviours. This study investigated how personality traits are related to compliance with environmental regulation in agriculture. The object of study was a water-protection rule that required farmers using fertilising to keep it a minimum distance away from nearby water bodies. Self-interested infringements can cause serious environmental damage to waters (negative externalities) through nitrogen runoff. In a survey among German farmers, we employed a 10-item version of the Big Five Inventory to measure the traits that are used as predictor variables in a regression analysis. The outcome variable was the farmers’ compliance behaviour in a business management game where rule-breaking was more profitable than rule-abidance. Some noteworthy findings were observed in the surveyed sample. (i) Neuroticism was positively related to ‘overall compliance’, measured as a binary yes/no variable; that is, more anxious farmers were less prone to rule-breaking. Surprisingly, however, a positive relationship between neuroticism and compliance was not found when looking separately at the deviant subgroup; here, greater neuroticism was associated with more severe rule violations, in terms of illicitly fertilised acreage. (ii) In the deviant subgroup, as might have been expected, higher levels of conscientiousness were associated with less severe rule-violations. Contrary to expectations, again, higher levels of agreeableness were linked to more severe non-compliance. A substantial positive relationship was found between extraversion and the severity of non-compliance, in accordance with ex-ante expectation. For openness to experience, no noteworthy results were obtained. The results indicate that agents with heterogeneous personality traits might react differently to identical economic and institutional environments. Moreover, it is suggested that, other than traits, there is another quality in agents (e.g. social control) that may have a decisive influence on their belonging to the compliant or non-compliant subpopulation. Farmers’ responses to changes brought forward by regulators who aim to prevent rule-breaking might therefore differ as well.

show abstract

Section: Problem Backgroundmentioning

confidence: 99%

Can personality traits explain compliance behaviour? - A study of compliance with water-protection rules in German agriculture

Funke¹,

Hirschauer²,

Peth³

et al. 2019

Preprint

View full text Add to dashboard Cite

show abstract

“…Eine diesbezügliche Mög-lichkeit besteht darin, Modelle zu entwickeln, welche die Folgen der Politikeinfüh-rung simulieren (Lensink & Londo 2010). Häufig setzen diese Modelle rational handelnde Gewinnmaximierer voraus (Veetil 2011). Jedoch verfolgen Entscheider häufig mehrere Ziele wie beispielweise Gewinnerwirtschaftung, Sicherheitsbestreben, Traditionen, Freizeitgestaltung oder soziale Anerkennung (Benz 2009).…”

Section: Ermittlung Der Totalordnung Nach Promethee IIunclassified

Bioenergie im Spannungsfeld

Ruppert¹,

Ibendorf²

2017

View full text Add to dashboard Cite

“…Such experiments help to find and implement the best design for a policy measure, increasing the effectiveness, sustainability and efficiency of such policy measures. So far, most ex‐ante policy recommendations are based on the rational choice approach, assuming a homo‐oeconomicus approach (Veetil,). Since this assumption has been recently challenged in the field of behavioural economics, it seems necessary to account for insights found in the lab (Veetil, ).…”

Section: Introductionmentioning

confidence: 99%

“…So far, most ex‐ante policy recommendations are based on the rational choice approach, assuming a homo‐oeconomicus approach (Veetil,). Since this assumption has been recently challenged in the field of behavioural economics, it seems necessary to account for insights found in the lab (Veetil, ). In this context, Levitt and List () and a later contribution by Camerer () discuss generalisability of lab experiments to the field.…”

Section: Introductionmentioning

confidence: 99%

Ex‐ante Evaluation of Policy Measures: Effects of Reward and Punishment for Fertiliser Reduction in Palm Oil Production

Moser¹,

Mußhoff²

2015

J Agricultural Economics

View full text Add to dashboard Cite

Palm oil production creates negative externalities, e.g. through intensive fertiliser application. Policies to limit externalities need an effective, sustainable and efficient measure We use a business simulation game in a framed field experiment in Indonesia to test ex-ante different incentives for reducing such negative externalities. This setting allows inclusion of adequate contextual features, required for reasonable ex-ante evaluation of policy measures. The different designs of the test incentives (either a reward or punishment) varied in their magnitude and probability of occurrence but with constant effects on expected income. Results show that participants react differently to these incentives, indicating that the design can contribute significantly to effectiveness, sustainability or efficiency. A high reward with a low probability was found to be the most effective and sustainable incentive. Moreover, for the most efficient design, a low and certain reward is indicated. for correspondence. This study was financed by the Deutsche Forschungsgemeinschaft (DFG) within the collaborative German-Indonesian research project CRC990. The authors thank their Indonesian as well as their German partners for their generous support. Moreover, we thank the Editor and anonymous referees for their helpful comments and suggestions.

show abstract

Conceptions of rationality in law and economics

Abstract: Homoeconomicus, Misesian homoagens, Behavioral law and economics, Knowledge problem, Entrepreneur, Heterogenous agents, Popperian falsification, K00, B49, B52, B53,

Cited by 7 publications

References 14 publications

Can personality traits explain compliance behaviour? - A study of compliance with water-protection rules in German agriculture

Can personality traits explain compliance behaviour? - A study of compliance with water-protection rules in German agriculture

Bioenergie im Spannungsfeld

Ex‐ante Evaluation of Policy Measures: Effects of Reward and Punishment for Fertiliser Reduction in Palm Oil Production

Contact Info

Product

Resources

About