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The Effect Of Rewards And Sanctions In Provision Of Public Goods

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Author Info
MARTIN SEFTON
ROBERT SHUPP
JAMES M. WALKER

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Abstract

"A growing number of field and experimental studies focus on the institutional arrangements by which individuals are able to solve collective action problems. Important in this research is the role of reciprocity and institutions that facilitate cooperation via opportunities for monitoring, sanctioning, and rewarding others. Sanctions represent a cost to both the participant imposing the sanction and the individual receiving the sanction. Rewards represent a zero-sum transfer from participants giving to those receiving rewards. We contrast reward and sanction institutions in regard to their impact on cooperation and efficiency in the context of a public goods experiment". ("JEL "C92) Copyright 2007 Western Economic Association International.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1465-7295.2007.00051.x
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Publisher Info
Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 45 (2007)
Issue (Month): 4 (October)
Pages: 671-690
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Handle: RePEc:bla:ecinqu:v:45:y:2007:i:4:p:671-690

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  3. Kurtis Swope, 2002. "An Experimental Investigation of Excludable Public Goods," Experimental Economics, Springer, vol. 5(3), pages 209-222, December. [Downloadable!] (restricted)
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  11. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory Of Fairness, Competition, And Cooperation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 817-868, August. [Downloadable!] (restricted)
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  12. Jennifer C. Coats & William S. Neilson, 2005. "Beliefs About Other-Regarding Preferences in a Sequential Public Goods Game," Economic Inquiry, Oxford University Press, vol. 43(3), pages 614-622, July. [Downloadable!] (restricted)
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  17. Masclet, D. & Noussair, C. & Tucker, S. & Villeval, M.C., 2001. "Monetary and Non-monetary Punishment in the Voluntary Contributions Mechanism," Purdue University Economics Working Papers 1141, Purdue University, Department of Economics.
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  18. Armin Falk & Ernst Fehr & Urs Fischbacher, . "Driving Forces of Informal Sanctions," IEW - Working Papers iewwp059, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  22. Andreoni, James A & Miller, John H, 1993. "Rational Cooperation in the Finitely Repeated Prisoner's Dilemma: Experimental Evidence," Economic Journal, Royal Economic Society, vol. 103(418), pages 570-85, May. [Downloadable!] (restricted)
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  24. James M. Walker & Matthew A. Halloran, 2004. "Rewards and Sanctions and the Provision of Public Goods in One-Shot Settings," Experimental Economics, Springer, vol. 7(3), pages 235-247, October. [Downloadable!]
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  29. Schmidt, David & Shupp, Robert & Walker, James & Ahn, T. K. & Ostrom, Elinor, 2001. "Dilemma games: game parameters and matching protocols," Journal of Economic Behavior & Organization, Elsevier, vol. 46(4), pages 357-377, December. [Downloadable!] (restricted)
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