PEW: Matt Jackson

Mon, Sep 16, 2019, 4:15 pm to 5:30 pm

We investigate the complementarity between informal communities and formal government enforcement of norms of reciprocation and exchange. We introduce a model in which people exchange informally within their community as well as externally on a market. We show that informal community and formal enforcement are complements: the news that someone was convicted of cheating on the market leads that person to be ostracized by their community, bolstering incentives. Although transactions within a community can be less directly beneficial than those on a wider market, doing some transactions within a community and others on a formal market lowers overall costs of enforcement and is still welfare-enhancing compared to either extreme for a wide range of costs of formal enforcement. We also show that religion can enhance the complementarity between community and formal enforcement, while corruption undermines it

Sponsor(s): 
RPPE, ETC

Upcoming

PE Research Seminar: Andrew Mack

Tue, Nov 26, 2019, 12:15 pm
Location: Fisher 200

PEW: Camilo García-Jimeno

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Tue, Dec 3, 2019, 12:15 pm

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Mon, Dec 9, 2019, 4:15 pm to 5:30 pm
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Princeton/Warwick/Utah Political Economy Conference 2020

Fri, Mar 20, 2020, 9:00 am to Sat, Mar 21, 2020, 7:00 pm
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Mon, Mar 30, 2020 (All day) to Fri, Apr 3, 2020 (All day)