Seminario CEDE - José Alberto Guerra
Formal rules can only partially reduce opportunistic behavior in human interactions. Cooperative or pro-social behavior, arising as a social norm and enforced by third parties (often at a personal cost) is therefore essential to achieve desirable social outcomes. But social norms do not always promote efficient outcomes. We study one particularly pernicious social norm (the "no sea sapo norm", as it is referred to in Colombia) that breaks the enforcement mechanism through third-party punishment: it dictates people to mind their own business and not snitch on others.