We compare fault-based and strict liability offences in law enforcement when behavior is influenced by informal prosocial norms of conduct. Fault tends to be more effective than strict liability in harnessing social or self-image concerns. When enforcement relies on fines and assessing fault is...

We consider legal obligations against a background of social norms, e.g., societal norms, professional codes of conduct or business standards. Violations of the law trigger reputational sanctions insofar as they signal non-adherence to underlying norms, raising the issue of the design of...

We conduct an experiment where participants choose between actions that provide private benefits but may also impose losses on strangers. Three legal environments are compared: no law, strict liability for the harm caused to others, and an efficiently designed negligence rule where damages are...

We consider situations where legal liability yields insufficient incentives for socially efficient behavior, e.g., individuals who cause harm are not always sued or are unable to pay fully for harm done. Some individuals nevertheless behave efficiently because of intrinsic prosocial concerns....