Proposals to provide juries with specific numerical instructions for settin
g punitive damages should bring greater rationality to punitive damages awa
rds. This approach is tested using evidence from 353 jury-eligible citizens
who applied these formulas to a series of legal cases. Few respondents ass
essed the correct values of punitive damages from the standpoint of deterre
nce. Anchoring effects of appeals by a plaintiff's lawyer or media coverage
of similar awards lead respondents to abandon the punitive damages formula
and set punitive damages based on the anchor. Minorities and the less well
educated were particularly unwilling or unable to apply the recommended pu
nitive damages formulas.