Incomplete or incorrect information about a mandate also can influence behavior in ways that are not commonly explained by typical assumptions of rationality. There is evidence that people are more responsive the more salient—or more notable—is the true price (or other important attribute) of an item. At the grocery store, a tax that is incorporated into an item’s price (and displayed that way on the shelf) appears to have a greater influence on the decision not to purchase that item than will a sales tax that is added at the register (Chetty, Looney, and Kroft, 2009); toll roads that require...
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Charities And Insurance
Charities And Insurance
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