Dynamic effects of enforcement on cooperation
Emeric Henry and
Nicolas Jacquemet ()
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
In situations where social payoffs are not aligned with private incentives, enforcement with fines can be a way to sustain cooperation. In this paper we show, by the means of a lab experiment , that past fines can have an effect on current behavior even when no longer in force. We document two mechanisms: a) past fines affect directly individuals' future propensity to cooperate; b) when fines for non cooperation are in place in the past, individuals experience higher levels of cooperation from partners and, consistent with indirect reciprocity motives, are in turn nicer towards others once these fines have been removed. This second mechanism is empirically prevalent and, in contrast with the first, induces a snowball effect of past enforcement. Our results can inform the design of costly enforcement policies.
Keywords: experiments; Laws; social values; cooperation; learning; spillovers; persistence of institutions; repeated games (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe, nep-cdm, nep-cse, nep-exp, nep-gth and nep-soc
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01971468
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Published in Proceedings of the National Academy of Sciences of the United States of America , National Academy of Sciences, 2018, 115 (49), pp.12425-12428. 〈10.1073/pnas.1813502115〉
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-01971468
Access Statistics for this paper
More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().