A comparative statics analysis of punishment in public-good experiments
AbstractThis paper provides a comparative statics analysis of punishment in public-good experiments. We vary systematically the effectiveness of punishment, that is, the factor by which punishment reduces the punished playerâs income, and we find that contributions to the public good increase monotonically in effectiveness. High effectiveness leads to near complete contribution rates and welfare improvements. Below a certain threshold, however, punishment cannot prevent the decay of cooperation found in the public-good game without punishment. In these cases, the possibility to punish may even worsen welfare. Finally, we show that punishment is a normal and inferior good.
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Bibliographic InfoArticle provided by Springer in its journal Experimental Economics.
Volume (Year): 11 (2008)
Issue (Month): 4 (December)
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Web page: http://www.springerlink.com/link.asp?id=102888
Decentralized punishment; Punishment effectiveness; Public good; Welfare; C92; D70; H41;
Other versions of this item:
- Nikos Nikiforakis & Hans-Theo Normann, 2005. "A Comparative Statics Analysis of Punishment in Public-Good Experiments," Royal Holloway, University of London: Discussion Papers in Economics 05/07, Department of Economics, Royal Holloway University of London, revised Jun 2005.
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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- Nikos Nikiforakis & Hans-Theo Normann & Brian Wallace, 2010.
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- Martin Sefton & Robert S. Shupp & James Walker, 2005.
"The Effect of Rewards and Sanctions in Provision of Public Goods,"
200504, Ball State University, Department of Economics, revised Feb 2005.
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- Martin Sefton & Robert Shupp & James M. Walker, 2006. "The Effect of Rewards and Sanctions in Provision of Public Goods," Caepr Working Papers 2006-005, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington, revised Aug 2006.
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