Sustaining cooperation in social dilemmas: Comparison of centralized punishment institutions

Yoshio Kamijo, Tsuyoshi Nihonsugi (), A. Takeuchi and Yukihiko Funaki ()

Games and Economic Behavior, 2014, vol. 84, issue C, 180-195

Abstract: This study investigates two centralized punishment institutions for a linear public goods game. These institutions require a certain contribution level and sanction under-contributing players. The two differ in who, among those who do not meet this requirement, receive sanctions. In one institution, all violators are sanctioned, and in the other, only the worst violator(s) is sanctioned. Theoretically, the public goods game of the latter institution yields contributions equal to or greater than that of the former institution with the same requirement and sanction level. The results of an experiment support this theoretical prediction. However, there is a discrepancy between the theory and laboratory observations in that the institution with the theoretically optimal requirement did not yield the highest profit.

Keywords: Linear public goods game; Sanction; Punishment institutions; Laboratory experiment (search for similar items in EconPapers)
JEL-codes: C72 C91 C92 K42 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:84:y:2014:i:c:p:180-195

DOI: 10.1016/j.geb.2014.01.002

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