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Complexity

Giuseppe Dari-Mattiacci

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The Rise Of Carrots And The Decline Of Sticks, Giuseppe Dari-Mattiacci, Gerrit De Geest Jan 2013

The Rise Of Carrots And The Decline Of Sticks, Giuseppe Dari-Mattiacci, Gerrit De Geest

Giuseppe Dari-Mattiacci

There is a remarkable tendency in modern legal systems to increasingly use carrots. This trend is not limited to legal systems but can also be observed in, for instance, parenting styles, social control mechanisms, and even law schools’ teaching methods. Yet, at first glance, sticks appear to be a more efficient means of inducing people to comply with legal rules or social norms because they are not meant to be applied (thus minimizing transaction costs and risks) and may cause fewer unintended distributional distortions. So how can we justify the widespread use of carrots?

This Article shows that carrots can …