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Learning to Punish: Experimental Evidence from a Sequential Step-Level Public Goods Game

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Author Info
David Cooper ()
Carol Stockman ()
Abstract

This paper studies how subjects in a three-person sequential step-level public good game learn to punish free riders more over time. Our current work makes several additions to the literature on other regarding behavior. First, our experiment provides evidence that subjects care about the actions that lead to an outcome as well as the outcome itself, replicating the results of A. Falk, E. Fehr and U. Fischbacher (Economic Inquiry, in press), J. Brandts and C. Solà (Games and Economic Behavior, 36(2), 138–157, 2001.) and J.H. Kagel and K. Wolfe (Working paper, Ohio State University, 1999). Second, our experiment provides one of the first tests of the newer theories of reciprocity by A. Falk and U. Fischbacher (Working paper, University of Zurich, 2000) and G. Charness and M. Rabin (Quarterly Journal of Economics, in press) that take a psychological games approach. We find that these theories fail to explain the experimental data. Finally, we examine the mechanism by which subjects learn to punish free-riding more ofter over time. Copyright Kluwer Academic Publishers 2002

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Publisher Info
Article provided by Springer in its journal Experimental Economics.

Volume (Year): 5 (2002)
Issue (Month): 1 (June)
Pages: 39-51
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Handle: RePEc:kap:expeco:v:5:y:2002:i:1:p:39-51

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Related research
Keywords: public goods; learning; reciprocity;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Brandts, Jordi & Sola, Carles, 2001. "Reference Points and Negative Reciprocity in Simple Sequential Games," Games and Economic Behavior, Elsevier, vol. 36(2), pages 138-157, August. [Downloadable!] (restricted)
  2. Fehr, Ernst & Kirchsteiger, Georg & Riedl, Arno, 1998. "Gift exchange and reciprocity in competitive experimental markets," European Economic Review, Elsevier, vol. 42(1), pages 1-34, January. [Downloadable!] (restricted)
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  3. Gary Charness & Matthew Rabin, 2000. "Social Preferences: Some Simple Tests and a New Model," Econometric Society World Congress 2000 Contributed Papers 1483, Econometric Society. [Downloadable!]
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  4. Gary E. Bolton & Axel Ockenfels, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March. [Downloadable!] (restricted)
  5. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July. [Downloadable!] (restricted)
  6. Armin Falk & Urs Fischbacher, . "A Theory of Reciprocity," IEW - Working Papers iewwp006, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. David M. McEvoy, 2009. "Not It: Opting out of Voluntary Coalitions that Provide a Public Good," Working Papers 09-14, Department of Economics, Appalachian State University. [Downloadable!]
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