Social norms are informal rules or shared expectations that influence individual behaviour in a society or group. They go beyond formal incentives like prices or laws and can override purely rational, self-interested behaviour​.

👥 Social Norms – Summary:

Social norms are the invisible rules that shape how people behave — not enforced by law, but by expectations and pressure from others.

In economics, norms influence choices beyond price tags and policies. They affect everything from labour markets and entrepreneurship to corruption and trust. Whether it's women entering the workforce or how a society views tax evasion, norms help explain real-world outcomes that pure theory can’t.

They fill the gaps where governments and markets fall short.