EconPapers    
Economics at your fingertips  
 

When to leave carrots for sticks: On the evolution of sanctioning institutions in open communities

Marina Chugunova, Wolfgang J. Luhan and Andreas Nicklisch

Economics Letters, 2020, vol. 191, issue C

Abstract: When asked, people dislike punishment institutions, although punishment is more effective than rewards to maintain cooperation in social dilemmas. Which institution do they choose in the long run? We study migration patterns in a laboratory experiment that allows participants to migrate continuously between punishment and reward communities. The majority of participants initially chooses the reward institution, but a substantial number of subjects joins the less profitable punishment community subsequently. In this case, the mere threat of punishment establishes high contributions. Income differences and missing compensations for cooperators in the reward community are the key factors for the decision to migrate.

Keywords: Open communities; Voting with feet; Cooperation; Sanctions; Public goods (search for similar items in EconPapers)
JEL-codes: C72 C92 H41 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176520301233
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:191:y:2020:i:c:s0165176520301233

DOI: 10.1016/j.econlet.2020.109155

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2021-01-21
Handle: RePEc:eee:ecolet:v:191:y:2020:i:c:s0165176520301233