Every day, parents would see that most of the other parents were on time, and those who were late would see that they were the exception. So, before the fine, social conventions drove parents to get to the daycares on time. But all this changed with the fine. Introducing a penalty eroded the social considerations. It translated a social obligation into a market contract. Rather than view the fine as a punishment and a threat to keep them coming on time, parents quickly began to view it as a payment for an extra service. Parents began thinking, “I can be late because I’m paying you for your
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