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Network architecture, cooperation and punishment in public good experiments

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Author Info

  • Jeffrey Carpenter

    ()

  • Shachar Kariv

    ()

  • Andrew Schotter

    ()

Abstract

Following Fehr and Gäechter (Am Econ Rev 90(4):980–994, 2000 ), a large and growing number of experiments show that public goods can be provided at high levels when mutual monitoring and costly punishment are allowed. Nearly all experiments, however, study monitoring and punishment in a complete network where all subjects can monitor and punish each other. The architecture of social networks becomes important when subjects can only monitor and punish the other subjects to whom they are connected by the network. We study several incomplete networks and find that they give rise to their own distinctive patterns of behavior. Nevertheless, a number of simple, yet fundamental, properties in graph theory allow us to interpret the variation in the patterns of behavior that arise in the laboratory and to explain the impact of network architecture on the efficiency and dynamics of the experimental outcomes. Copyright Springer-Verlag 2012

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Bibliographic Info

Article provided by Springer in its journal Review of Economic Design.

Volume (Year): 16 (2012)
Issue (Month): 2 (September)
Pages: 93-118

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Handle: RePEc:spr:reecde:v:16:y:2012:i:2:p:93-118

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Related research

Keywords: Networks; Public goods; Monitoring; Costly punishment; Experiment; C91; C92; D62; D63; H41;

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References

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  1. Jeffrey Carpenter, 2002. "Punishing Free Riders: how group size affects mutual monitoring and the provision of public goods," Middlebury College Working Paper Series 0206, Middlebury College, Department of Economics.
  2. David Masclet & Charles Noussair & Steven Tucker & Marie-Claire Villeval, 2003. "Monetary and Nonmonetary Punishment in the Voluntary Contributions Mechanism," American Economic Review, American Economic Association, vol. 93(1), pages 366-380, March.
  3. Cinyabuguma, Matthias & Page, Talbot & Putterman, Louis, 2005. "Cooperation under the threat of expulsion in a public goods experiment," Journal of Public Economics, Elsevier, vol. 89(8), pages 1421-1435, August.
  4. Ernst Fehr & Simon Gaechter, . "Cooperation and Punishment in Public Goods Experiments," IEW - Working Papers 010, Institute for Empirical Research in Economics - University of Zurich.
  5. Kosfeld Michael, 2004. "Economic Networks in the Laboratory: A Survey," Review of Network Economics, De Gruyter, vol. 3(1), pages 1-23, March.
  6. Jeffrey Carpenter & Peter Matthews, 2009. "What norms trigger punishment?," Experimental Economics, Springer, vol. 12(3), pages 272-288, September.
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Citations

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Cited by:
  1. Daniele Nosenzo & Martin Sefton, 2012. "Promoting Cooperation: the Distribution of Reward and Punishment Power," Discussion Papers 2012-08, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  2. Gary Charness & Francesco Feri & Miguel A. Meléndez-Jiménez & Matthias Sutter, 2014. "Experimental games on networks: Underpinnings of behavior and equilibrium selection," Working Papers 2014-14, Faculty of Economics and Statistics, University of Innsbruck.
  3. Andrweas Leibbrandt & Abhijit Ramalingam & Lauri Sääksvuori & James M. Walker, 2012. "Broken Punishment Networks in Public Goods Games: Experimental Evidence," Jena Economic Research Papers 2012-004, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  4. Daniele Nosenzo & Theo Offerman & Martin Sefton & Ailko van der Veen, 2014. "Discretionary Sanctions and Rewards in the Repeated Inspection Game," Discussion Papers 2014-04, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  5. Charness, Gary & Feri, Francesco & Meléndez-Jiménez, Miguel A. & Sutter, Matthias, 2014. "Experimental Games on Networks: Underpinnings of Behavior and Equilibrium Selection," IZA Discussion Papers 8104, Institute for the Study of Labor (IZA).
  6. Daniela Grieco & Marco Faillo & Luca Zarri, 2013. "Top Contributors as Punishers," Working Papers 24/2013, University of Verona, Department of Economics.

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