Punishment or Reward? The Choice of Nudging Policy in Minor Violations of Law Insights from Illegal Parking Problem

In todays society, minor violations of laws present significant economic and social consequences, including the loss of social cohesion and trusts within the society. Traditional punitive measures are often ineffective, as fines may be regarded as the price of committing these violations. This study explores the effectiveness of reward-based system compared to punitive measures under the context of minor traffic violations. Through an online survey, this paper compares the difference in the response of the public towards punitive measures, long term reward system and short-term reward system. The results suggest that integrating reward-based measures, could be more effective in reducing minor violation of laws compared with punitive measures.