IDEAS home Printed from https://ideas.repec.org/a/ses/arsjes/1997-ii-12.html
   My bibliography  Save this article

From the Price to the Crowding Effect

Author

Listed:
  • Bruno S. Frey

Abstract

Crowding-Theory introduces a new psychological effect into economics. Under identifiable conditions, a higher price or stricter regulation reduces the intrinsic motivation to perform a task. Crowding-Out is the only effect which systematically works in the opposite direction to the Relative Price Effect. Crowding-Out Theory is empirically applied to two issues in Switzerland: (1) The support for siting a nuclear waste repository strongly fell when the population was offered a compensation for hosting it. (2) The possibility of direct participation in politics via referenda tends to raise civic virtue, and (ceteris paribus) tax compliance (Crowding-In Effect).

Suggested Citation

  • Bruno S. Frey, 1997. "From the Price to the Crowding Effect," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 133(II), pages 325-350, June.
    • Handle: RePEc:ses:arsjes:1997-ii-12
    as

    Download full text from publisher

    File URL: http://www.sjes.ch/papers/1997-II-12.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Güth, W., 1997. "Boundedly Rational Decision Emergence -A General Perspective and Some Selective Illustrations-," SFB 373 Discussion Papers 1997,29, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    2. Neunzig, Alexander R., 2002. "Effiziente Fixlöhne, Arbeitsfreude und Crowding-Effekte," CSLE Discussion Paper Series 2002-03, Saarland University, CSLE - Center for the Study of Law and Economics.
    3. Guth, Werner, 2000. "Boundedly rational decision emergence - a general perspective and some selective illustrations," Journal of Economic Psychology, Elsevier, vol. 21(4), pages 433-458, August.
    4. Coad, Alex & Binder, Martin, 2014. "Causal linkages between work and life satisfaction and their determinants in a structural VAR approach," Economics Letters, Elsevier, vol. 124(2), pages 263-268.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ses:arsjes:1997-ii-12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kurt Schmidheiny (email available below). General contact details of provider: https://edirc.repec.org/data/sgvssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.