We study the moral hazard effects of the drug copayment threshold in Finland using detailed prescription drug purchase … data. The analysis reveals that the average drug costs increase discontinuously by 17% at the threshold above which out …-of-pocket drug costs decrease substantially. Our results suggest an average price elasticity of -0.17, which indicates evident moral …

Research examining the effect of weak punishment on conformity indicates that punishment can backfire and lead to … of social norms and their interplay with weak punishment in the context of a trust game. Across six conditions, we … systematically vary the combination of existence of weak punishment and norm information. Norm information may refer either to what …

This paper argues that the Economics of Crime concentrates too much on punishment as a policy to fight crime, which is … unwise for several reasons. There are important instances in which punishment simply cannot reduce crime. Several feasible … alternatives to punishment exist, such as offering positive incentives or handing out awards for law abiding behavior. These …

a punishment regime, in which certain individuals are permitted, but not required, to have punishment directed toward … them. The punishment system can condition on type and contribution history. The results indicate that the most effective … regime, in terms of contributions and earnings, is one that allows punishment of low contributors only, regardless of …

Direct experience of a peer’s punishment might make non-punished peers reassess the probability and consequences of … facing punishment and hence induce a change in their behavior. We test this mechanism in a setting, China, in which we … observe the reactions to the same peer’s punishment by listed firms with different incentives to react - state …

abnormal returns found in the literature seem to be exaggerated by more than three times. Hence, the “punishment” effect …