ABSTRACT
Chapter 13 uses the foundation established in the preceding chapters to undertake a systematic analysis of laws and social norms that act as rules of the game. We discuss the complementary nature and supplementary nature between law and social norms and the differences and similarities between the two. We touch upon the ways laws and social norms incentivize people to cooperate, coordinate people’s expectations, and transmit private information. We discuss the reasons people respect or violate social norms and the social conditions needed for laws and social norms to play a role.
