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This study analyzes deterrence schemes and their impact on stealing. The
results confirm Becker’s deterrence hypothesis. Moreover, crowding out of
pro-social behavior occurs due to deterrence incentives: when deterrence incentives first exist and are removed later on, subsequent behavior is more selfish
than without this deterrence history. This study offers evidence that (part of
this) crowding out takes place via change of emotions. Without deterrence
incentives in place, in a variant of the dictator game, players with pro-social
emotions steal less. When players face expected punishment, pro-social emotions
are deactivated and do not decrease stealing; in this case, self-centered
emotions get activated and motivate greater stealing. This study provides support
for theories on emotions in behavioral criminal law and economics and
offers new insights for deterrence policy
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