IDEAS home Printed from https://ideas.repec.org/a/wly/empleg/v13y2016i1p116-152.html
   My bibliography  Save this article

Unpacking Negligence Liability: Experimentally Testing the Governance Effect

Author

Listed:
  • Theodore Eisenberg
  • Christoph Engel

Abstract

Arguably, if a court holds a defendant liable for negligently inflicting harm on the plaintiff, this intervention combines three effects: (1) the court specifies the normative expectation, (2) the court expresses dissatisfaction with the plaintiff's behavior, for example, her level of activity, and (3) the court obliges the defendant to compensate the plaintiff. In the field, it would be close to impossible to disentangle the three effects, or to investigate how they interact with intrinsic reticence to inflict harm on a passive outsider. We therefore go to the lab. We do not find an effect of intrinsic morality. However, the intervention has a separate significant effect on each of the three channels.

Suggested Citation

  • Theodore Eisenberg & Christoph Engel, 2016. "Unpacking Negligence Liability: Experimentally Testing the Governance Effect," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 13(1), pages 116-152, March.
    • Handle: RePEc:wly:empleg:v:13:y:2016:i:1:p:116-152
    DOI: 10.1111/jels.12099
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jels.12099
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jels.12099?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Vera Angelova & Olivier Armantier & Giuseppe Attanasi & Yolande Hiriart, 2014. "Relative performance of liability rules: experimental evidence," Theory and Decision, Springer, vol. 77(4), pages 531-556, December.
    2. Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences with Simple Tests," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(3), pages 817-869.
    3. Benno Torgler, 2002. "Speaking to Theorists and Searching for Facts: Tax Morale and Tax Compliance in Experiments," Journal of Economic Surveys, Wiley Blackwell, vol. 16(5), pages 657-683, December.
    4. Ederer, Florian & Stremitzer, Alexander, 2017. "Promises and expectations," Games and Economic Behavior, Elsevier, vol. 106(C), pages 161-178.
    5. Falk, Armin & Fischbacher, Urs, 2006. "A theory of reciprocity," Games and Economic Behavior, Elsevier, vol. 54(2), pages 293-315, February.
    6. Ellingsen, Tore & Johannesson, Magnus & Tjøtta, Sigve & Torsvik, Gaute, 2010. "Testing guilt aversion," Games and Economic Behavior, Elsevier, vol. 68(1), pages 95-107, January.
    7. Gerlinde Fellner & Rupert Sausgruber & Christian Traxler, 2009. "Testing Enforcement Strategies in the Field: Legal Threat, Moral Appeal and Social Information," Working Papers 2009-23, Faculty of Economics and Statistics, Universität Innsbruck.
    8. Benno Torgler, 2012. "A Field Experiment on Moral Suasion and Tax Compliance Focusing on Under-Declaration and Over-Deduction," CREMA Working Paper Series 2012-06, Center for Research in Economics, Management and the Arts (CREMA).
    9. Landeo, Claudia M., 2009. "Cognitive coherence and tort reform," Journal of Economic Psychology, Elsevier, vol. 30(6), pages 898-912, December.
    10. Erin L. Krupka & Roberto A. Weber, 2013. "Identifying Social Norms Using Coordination Games: Why Does Dictator Game Sharing Vary?," Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 495-524, June.
    11. Landeo, Claudia M. & Nikitin, Maxim & Babcock, Linda, 2007. "Split-awards and disputes: An experimental study of a strategic model of litigation," Journal of Economic Behavior & Organization, Elsevier, vol. 63(3), pages 553-572, July.
    12. Dufwenberg, Martin & Kirchsteiger, Georg, 2004. "A theory of sequential reciprocity," Games and Economic Behavior, Elsevier, vol. 47(2), pages 268-298, May.
    13. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1082-1095, October.
    14. Gary Charness & Martin Dufwenberg, 2006. "Promises and Partnership," Econometrica, Econometric Society, vol. 74(6), pages 1579-1601, November.
    15. Blumenthal, Marsha & Christian, Charles W. & Slemrod, Joel, 2001. "Do Normative Appeals Affect Tax Compliance? Evidence from a Controlled Experiment in Minnesota," National Tax Journal, National Tax Association, vol. 54(n. 1), pages 125-38, March.
    16. Dal Bó, Ernesto & Dal Bó, Pedro, 2014. "“Do the right thing:” The effects of moral suasion on cooperation," Journal of Public Economics, Elsevier, vol. 117(C), pages 28-38.
    17. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
    18. Hallsworth, Michael & List, John A. & Metcalfe, Robert D. & Vlaev, Ivo, 2017. "The behavioralist as tax collector: Using natural field experiments to enhance tax compliance," Journal of Public Economics, Elsevier, vol. 148(C), pages 14-31.
    19. Noah J. Goldstein & Robert B. Cialdini & Vladas Griskevicius, 2008. "A Room with a Viewpoint: Using Social Norms to Motivate Environmental Conservation in Hotels," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(3), pages 472-482, March.
    20. Daniel Zizzo, 2010. "Experimenter demand effects in economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 13(1), pages 75-98, March.
    21. Christoph Vanberg, 2008. "Why Do People Keep Their Promises? An Experimental Test of Two Explanations -super-1," Econometrica, Econometric Society, vol. 76(6), pages 1467-1480, November.
    22. Dirk Engelmann & Martin Strobel, 2004. "Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments," American Economic Review, American Economic Association, vol. 94(4), pages 857-869, September.
    23. Christoph Engel & Michael Kurschilgen, 2013. "The Coevolution of Behavior and Normative Expectations: An Experiment," American Law and Economics Review, American Law and Economics Association, vol. 15(2), pages 578-609.
    24. Charness, Gary & Dufwenberg, Martin, 2010. "Bare promises: An experiment," Economics Letters, Elsevier, vol. 107(2), pages 281-283, May.
    25. Benno Torgler, 2012. "A Field Experiment on Moral Suasion and Tax Compliance Focusing on Under-Declaration and Over-Deduction," CREMA Working Paper Series 2012-06, Center for Research in Economics, Management and the Arts (CREMA).
    26. James Andreoni & B. Douglas Bernheim, 2009. "Social Image and the 50-50 Norm: A Theoretical and Experimental Analysis of Audience Effects," Econometrica, Econometric Society, vol. 77(5), pages 1607-1636, September.
    27. Dejong, Dv & Forsythe, R & Uecker, Wc, 1985. "The Methodology Of Laboratory Markets And Its Implications For Agency Research In Accounting And Auditing," Journal of Accounting Research, Wiley Blackwell, vol. 23(2), pages 753-793.
    28. repec:bla:jecsur:v:16:y:2002:i:5:p:657-83 is not listed on IDEAS
    29. Benno Torgler, 2004. "Moral suasion: An alternative tax policy strategy? Evidence from a controlled field experiment in Switzerland," Economics of Governance, Springer, vol. 5(3), pages 235-253, November.
    30. Gerlinde Fellner & Rupert Sausgruber & Christian Traxler, 2013. "Testing Enforcement Strategies In The Field: Threat, Moral Appeal And Social Information," Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 634-660, June.
    31. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9), pages 1082-1095.
    32. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
    33. Patricia Funk, 2007. "Is There An Expressive Function of Law? An Empirical Analysis of Voting Laws with Symbolic Fines," American Law and Economics Review, American Law and Economics Association, vol. 9(1), pages 135-159.
    34. Pierpaolo Battigalli & Martin Dufwenberg, 2007. "Guilt in Games," American Economic Review, American Economic Association, vol. 97(2), pages 170-176, May.
    35. Wittman, Donald & Friedman, Daniel & Crevier, Stephanie & Braskin, Aaron, 1997. "Learning Liability Rules," The Journal of Legal Studies, University of Chicago Press, vol. 26(1), pages 145-164, January.
    36. Benno Torgler, 2004. "Moral Suasion: An alternative tax policy strategy? Evidence from a controlled field experiment in Switzerland," CREMA Working Paper Series 2004-01, Center for Research in Economics, Management and the Arts (CREMA).
    37. Blumenthal, Marsha & Christian, Charles W. & Slemrod, Joel, 2001. "Do Normative Appeals Affect Tax Compliance? Evidence From a Controlled Experiment in Minnesota," National Tax Journal, National Tax Association;National Tax Journal, vol. 54(1), pages 125-138, March.
    38. Ronald R. King & Rachel Schwartz, 1999. "Legal Penalties and Audit Quality: An Experimental Investigation," Contemporary Accounting Research, John Wiley & Sons, vol. 16(4), pages 685-710, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Guerra Alice & Parisi Francesco, 2024. "Are Individual Care Investments Affected by Past Accident Experiences?," Review of Law & Economics, De Gruyter, vol. 20(2), pages 225-266.
    2. Deffains, Bruno & Espinosa, Romain & Fluet, Claude, 2019. "Laws and norms: Experimental evidence with liability rules," International Review of Law and Economics, Elsevier, vol. 60(C).
    3. Christoph Engel & Rima Maria Rahal, 2020. "What the Judge Argues is Not What the Judge Thinks - Eye Tracking Evidence about the Normative Weight of Conflicting Concerns in a Torts Case," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2020_03, Max Planck Institute for Research on Collective Goods, revised 01 Mar 2021.
    4. Guerra Alice & Parisi Francesco, 2022. "Injurers versus Victims: (A)Symmetric Reactions to Symmetric Risks," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 22(2), pages 603-620, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kristina M. Bott & Alexander W. Cappelen & Erik Ø. Sørensen & Bertil Tungodden, 2020. "You’ve Got Mail: A Randomized Field Experiment on Tax Evasion," Management Science, INFORMS, vol. 66(7), pages 2801-2819, July.
    2. Martinangeli, Andrea F.M. & Windsteiger, Lisa, 2024. "Inequality shapes the propagation of unethical behaviours: Cheating responses to tax evasion along the income distribution," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 135-181.
    3. Fluet, Claude & Galbiati, Rpbertp, 2016. "Lois et normes : les enseignements de l'économie comportementale," L'Actualité Economique, Société Canadienne de Science Economique, vol. 92(1-2), pages 191-215, Mars-Juin.
    4. Christian Thoeni & Simon Gaechter, 2011. "Peer Effects and Social Preferences in Voluntary Cooperation," Discussion Papers 2011-09, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    5. Pikulina, Elena S. & Tergiman, Chloe, 2020. "Preferences for power," Journal of Public Economics, Elsevier, vol. 185(C).
    6. Peeters, Ronald & Vorsatz, Marc, 2021. "Simple guilt and cooperation," Journal of Economic Psychology, Elsevier, vol. 82(C).
    7. Barron, Kai & Nurminen, Tuomas, 2020. "Nudging cooperation in public goods provision," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 88, pages 1-1.
    8. Thöni, Christian & Gächter, Simon, 2015. "Peer effects and social preferences in voluntary cooperation: A theoretical and experimental analysis," Journal of Economic Psychology, Elsevier, vol. 48(C), pages 72-88.
    9. Christoph Engel & André Schmelzer, 2017. "Committing the English and the Continental Way – An Experiment," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2017_16, Max Planck Institute for Research on Collective Goods.
    10. Barron, Kai & Nurminen, Tuomas, 2018. "Nudging cooperation," Discussion Papers, Research Unit: Economics of Change SP II 2018-305, WZB Berlin Social Science Center.
    11. James Alm, 2019. "What Motivates Tax Compliance?," Journal of Economic Surveys, Wiley Blackwell, vol. 33(2), pages 353-388, April.
    12. Ederer, Florian & Stremitzer, Alexander, 2017. "Promises and expectations," Games and Economic Behavior, Elsevier, vol. 106(C), pages 161-178.
    13. Hallsworth, Michael & List, John A. & Metcalfe, Robert D. & Vlaev, Ivo, 2017. "The behavioralist as tax collector: Using natural field experiments to enhance tax compliance," Journal of Public Economics, Elsevier, vol. 148(C), pages 14-31.
    14. James Alm & Lilith Burgstaller & Arrita Domi & Amanda März & Matthias Kasper, 2023. "Nudges, Boosts, and Sludge: Using New Behavioral Approaches to Improve Tax Compliance," Economies, MDPI, vol. 11(9), pages 1-22, September.
    15. Maroš Servátka & Steven Tucker & Radovan Vadovič, 2011. "Building Trust—One Gift at a Time," Games, MDPI, vol. 2(4), pages 1-22, September.
    16. Eric Cardella, 2016. "Exploiting the guilt aversion of others: do agents do it and is it effective?," Theory and Decision, Springer, vol. 80(4), pages 523-560, April.
    17. Alexander Morell, 2014. "The Short Arm of Guilt: Guilt Aversion Plays Out More Across a Short Social Distance," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2014_19, Max Planck Institute for Research on Collective Goods, revised Dec 2016.
    18. Eugen Dimant & Tobias Gesche, 2021. "Nudging Enforcers: How Norm Perceptions and Motives for Lying Shape Sanctions," CESifo Working Paper Series 9385, CESifo.
    19. Sinning, Mathias & Zhang, Yinjunjie, 2023. "Social norms or enforcement? A natural field experiment to improve traffic and parking fine compliance," Journal of Economic Behavior & Organization, Elsevier, vol. 210(C), pages 43-60.
    20. Philipp Doerrenberg & Jan Schmitz, 2017. "Tax compliance and information provision. A field experiment with small firms," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 1(1), pages 47-54, February.

    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:wly:empleg:v:13:y:2016:i:1:p:116-152. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1740-1461 .

    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.