A potential explanation for why the fines increased lateness is that, prior to their introduction, parents were motivated to be on time by non-monetary factors. These included a sense of moral responsibility to avoid inconveniencing the daycare staff, altruistic feelings towards them, and a view of punctuality as a reciprocal duty within the shared context of childcare.

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The unexpected outcome of the daycare experiment, where a monetary penalty for lateness actually increased the frequency of late pickups, presents a significant puzzle. The central question arising from this result is to understand the underlying reasons why introducing a 'price' for lateness had the opposite of the intended deterrent effect.

Why Did Fining for Lateness Backfire?

To cite the ebook, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/.

To cite a unit, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/ Unit [unit number] (url).

CORE Econ - The Economy 2.0: Microeconomics

Moral and Reciprocal Obligations as a Pre-Fine Deterrent to Lateness

The introduction of a fine provided a new psychological 'frame' for the decision on punctuality, shifting it from a moral issue to a market transaction. This market-like incentive signaled that lateness was a service that could be purchased for a price, making self-interested behavior more acceptable than concern for others. By paying the fine, parents felt they had acquired the right to be late without guilt, transforming a social obligation into a commercial exchange. This perspective is detailed in Samuel Bowles's 2016 book, *The Moral Economy*.

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