The power of law comes through its ability to help people build up expectations about one another’s behaviour
At a basic level, laws are nothing but ink written on pieces of paper. What makes them powerful is how they change the beliefs of all the agents in society. Kaushik Basu discusses these ideas in this short video about his new book, The Republic of Beliefs. He uses modern game theory to illustrate the compelling argument for why perception about one another’s behaviour is key to the power of law.