5 - Social norms: Protect victims Solve freerider problems:...

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Social norms: Protect victims Solve free-rider problems: citizenship is not just a right but also a duty  to some people. People have incentives to free ride. Mitigate the externalities of social behavior. Externality is the  unintended or secondary effect on third party. The extreme case is in  the professional organizations. Professional norms: emerged to particularly regulate the externality.  Professionals are selling credence goods (qualities are hard to judge). Has  caste-like systems. To others outside of the profession, members are  interchangeable/fungible. To a large extent, it’s hard to differentiate the one  professional to another when the outsider has no real knowledge about the  profession. The negative externality is as high as the positive externality. This is  due to the interchangeability of the professionals.  Coordination: such as traffic laws
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5 - Social norms: Protect victims Solve freerider problems:...

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