ECO 4106- Final Exam Guide - Comprehensive Notes for the exam ( 84 pages long!)
Document Summary
Abstract: the deterrence hypothesis predicts that the introduction of a penalty that leaves everything else unchanged will reduce the occurrence of the behavior subject to the fine. We present the result of a field study in a group of day-care centers that contradicts this prediction. Introduction: when negative consequences are imposed on a behavior, they will produce a reduction of that particular response. When those negative consequences are removed, the behavior that has been discontinued will typically tend to reappear. This change, however, also changes the problem of the other agents, and their reactions, and therefore affects again the problem of the single decision maker. Background: ten day care centers in israel, 6 with fine imposed, 4 control, 20 weeks; 4 weeks" observation, 5-7 fine imposed, 4 weeks with fine removed, fine imposed for parents picking up their children over 10 minutes late.
