If this is the case, then why do people act differently under identical circumstances and faced with the same incentives? Consider the following example (in Tyler Cowen’s new book): until 2002, UN diplomats enjoyed immunity from parking violations in New York. Between the end of 1997 and 2002, these diplomats accounted for 150,000 violations. On one extreme were those who parked in illegal spaces and failed to pay their fines. Kuwait had 246 unpaid tickets per diplomat, whilst Egypt, Sudan, Mozambique, Angola, Senegal and Pakistan all had hundreds of unpaid tickets. On the other hand, some diplomats always paid their fines. They came from Norway, Sweden, Canada, Ireland, the Netherlands, England and Japan.
The diplomats were all in the same circumstance of having the immunity to park where they wished and to decide whether or not to pay any resulting tickets. The differences stemmed from the values and culture each brought from their home nation. Diplomats hailing from countries where corruption leads to irresponsible behavior generally failed to pay their fines.