Regulation, Enforcement and Compliance

Regulation, Enforcement and Compliance

The regulation of human behavior through sanctions has been the hallmark of the economic analysis of law since Becker's seminal article on the matter (1968). At the core of this model lays the concept of expected sanctions that are determined by the probability of detection and the magnitude of the penalty, and the assumption that potential transgressors are rational utility maximizes. Recent studies have incorporated insights from behavioral economics and psychology into compliance models, and demonstrated that the desirable policies might be diametrically opposed to those suggested by rational choice theory. The Center furthers the study of regulation, enforcement, and compliance employing both stylized laboratory experiments and field studies with specific emphasis on the regulation of repeat behavior.