The Behavioral Effect of Pigovian Regulation: Evidence from a Field Experiment
Posted on July 17th, 2017 by tagadminMarket-Âbased regulation, and in particular Pigovian taxes/subsidies, have the potential to make consumers internalize socially harmful external effects associated with their choices. Recent behavioral literature, however, suggests that explicit financial penalties/rewards may undermine willingness to behave prosocially.
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