ABSTRACT
Very often, when we think about why people do what they do, we consider their personal preferences, beliefs, desires, or commitments. These are meant to give an explanation for their individual actions. Bob mowed his lawn because he likes to keep his yard looking nice. Carol shows up to work a bit before 9 am every day because she values punctuality. And so on. When we think about larger-scale issues, we often assume that the way to change people's behaviors is to change the laws. If you want to reduce jaywalking, make it illegal and punish jaywalkers with a hefty fine. If you want to promote education, legally mandate that boys and girls must go to school. On this sort of view, we can see people's actions as some combination of their individual wants and desires, as constrained by whatever is legal. To complicate this picture further, we could add some kind of budget constraint. People do as much to satisfy their preferences as they can while constrained by their resources and what's legally permissible.
