Pigovian regulation provides monetary penalties/rewards to incentivize prosocial behavior, and may thereby trigger behavioral effects beyond a more standard response associated with a change in relative prices. This paper quantifies the magnitude of these behavioral effects using data from an...

The work of Kahneman, Tversky and other psychologists has called the classical model of homo ?conomicus into question. Many studies conducted in psychology and economics have shown that classical economic expected utility theory does not satisfactorily describe human behaviour under risk. We...