Sanctions are often so weak that a money maximizing individual would not be deterred. In this paper I show that they may nonetheless serve a forward looking purpose if sufficiently many individuals are averse against advantageous inequity. Using the Fehr/Schmidt model (QJE 1999) I define three...

Die Worte Wettbewerb und Gemeinwohl kommen im Grundgesetz nicht vor. In ständiger Rechtsprechung betont das Bundesverfassungsgericht, dass das Grundgesetz keine Entscheidung über die deutsche Wirtschaftsverfassung getroffen hat. Gleichwohl hat das Gericht häufig über das Verhältnis von...

The German Basic Law is open for an interpretation that would allow the Constitutional Court to test the normative adequacy of most statutes. If the court does, it could be modelled as the supervisor of the legislator, i.e., of the agent of the people. The model predicts collusion between the...

The European Community is about to enlarge its de facto constitution by a fundamental rights charter. It is intended to become legally binding, at least in the long run. If it is, it will profoundly change the political opportunity structure between the Community and its Member States, among the...

Regulation is almost a synonym for public law. Government, relying on its sovereign powers, intervenes into freedom for the sake of social betterment. Reality less and less coincides with this traditional picture. Regulation is increasingly replaced by private or hybrid governance, i.e., by...