Regulation of technology adoption when individuals pursue multiple utility

Should regulatory approaches to technology adoption in U.S. agriculture be command and control in character, or use economic incentives? This paper addresses this question while testing the “I and We” multiple utility model and suggesting socioeconomic theory as a conceptual framework. Results show that one perhaps cannot understand farmer response to regulation without considering norms. Introducing the “We-utility” notion into the standard “I-utility” model adds explanatory power. Government's regulatory role needs to be shifted to first providing the impetus for action and then to helping in the evolution of norms, no matter which approach is used. The proposed socioeconomic theory goes beyond standard microeconomics by including both the idea of norms and that of positive freedoms, and thus introducing ethical considerations into economic analysis.