search query: @indexterm SOCIAL ENVIRONMENT / total: 216
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| Author: | Nyberg, S. |
| Title: | The honest society: Stability and policy considerations |
| Journal: | Journal of Public Economics
1997 : APR, VOL. 64:1, p. 83-99 |
| Index terms: | GAME THEORY PUBLIC POLICY SOCIAL ENVIRONMENT ATTITUDES |
| Language: | eng |
| Abstract: | The environment in which individual interactions take place determines the riskness of the transactions and the relative payoffs to honest and dishonest individuals. Important environmental factors include the ease of monitoring and the efficacy of legal redress. All activities that reduce the exposure to opportunism are summarized under the term safeguards in this paper. The basic assumptions about the safeguards are that it gets expensive to move towards complete protection, and that they neither have intrinsic value nor generate any surplus when produced. Honest people take precautions in order to safeguard their transactions. Policies that lower individual safeguard costs and the public provision of safeguards are found to increase social welfare and continue to do so up to the point where population is entirely honest. |
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