Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/121357
Authors: 
Feess, Eberhard
Schildberg-Hörisch, Hannah
Schramm, Markus
Wohlschlegel, Ansgar
Year of Publication: 
2015
Series/Report no.: 
SFB/TR 15 Discussion Paper 526
Abstract: 
We develop a theoretical model to identify and compare partial and equilibrium effects of uncertainty and the magnitude of fines on punishment and deterrence. Partial effects are effects on potential violators' and punishers' decisions when the other side's behavior is exogenously given. Equilibrium effects account for the interdependency of these decisions. This interdependency is important since, in the case of legal uncertainty, higher fines may reduce the willingness to punish, which in turn reduces the deterrence effect of high fines. Using a laboratory experiment, we identify these effects empirically by means of a strategy-method design in which potential violators can condition their behavior on the behavior of potential punishers and vice versa. All our experimental findings on both partial and equilibrium effects are in line with the hypotheses derived from the theory.
Subjects: 
Deterrence
Punishment
Uncertainty
Fines
Partial and Equilibrium Effects
Lab Experiment
JEL: 
K12
K42
C91
D64
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.