Bénabou, Roland; Tirole, Jean - C.E.P.R. Discussion Papers - 2011
), material or other explicit incentives (laws) and social sanctions or rewards (norms). It first examines how honor, stigma and … social norms arise from individuals’ behaviors and inferences, and how they interact with material incentives. It then … characterizes optimal incentive-setting in the presence of norms, deriving in particular appropriately modified versions of Pigou …