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On the Design of Peer Punishment Experiments

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Abstract

We discuss how technologies of peer punishment might bias the results that are observed in experiments. A crucial parameter is the “fine-to-fee” ratio, which describes by how much the punished subjects income is reduced relatively to the fee the punishing subject has to pay to inflict punishment. We show that a punishment technology commonly used in experiments embeds a variable fine-to-fee ratio and show that it confounds the empirical findings about why, whom, and how much subjects punish.

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Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number 615.04.

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Length: 15
Date of creation: 01 Jun 2004
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Handle: RePEc:aub:autbar:615.04

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Keywords: sanctions; public goods; cooperation; experiments;

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References

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  1. Noussair, C.N. & Masclet, D. & Tucker, S. & Villeval, M..C, 2003. "Monetary and non-monetary punishment in the voluntary contributions mechanism," Open Access publications from Tilburg University urn:nbn:nl:ui:12-377951, Tilburg University.
  2. Josef Falkinger, 2000. "A Simple Mechanism for the Efficient Provision of Public Goods: Experimental Evidence," American Economic Review, American Economic Association, vol. 90(1), pages 247-264, March.
  3. Ernst Fehr & Simon Gaechter, 1999. "Cooperation and Punishment in Public Goods Experiments," CESifo Working Paper Series 183, CESifo Group Munich.
  4. Jeffrey Carpenter, 2002. "The Demand for Punishment," Middlebury College Working Paper Series 0243, Middlebury College, Department of Economics.
  5. Nikos Nikiforakis, 2004. "Punishment and Counter-punishment in Public Goods Games: Can we still govern ourselves?," Experimental 0403001, EconWPA.
  6. Bochet, Olivier & Page, Talbot & Putterman, Louis, 2006. "Communication and punishment in voluntary contribution experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 60(1), pages 11-26, May.
  7. Talbot Page & Louis Putterman & Bulent Unel, 2005. "Voluntary Association in Public Goods Experiments: Reciprocity, Mimicry and Efficiency," Economic Journal, Royal Economic Society, vol. 115(506), pages 1032-1053, October.
  8. Carpenter, Jeffrey P., 2004. "Punishing Free-Riders: How Group Size Affects Mutual Monitoring and the Provision of Public Goods," IZA Discussion Papers 1337, Institute for the Study of Labor (IZA).
  9. Martin Sefton & Robert Shupp & James M. Walker, 2007. "The Effect Of Rewards And Sanctions In Provision Of Public Goods," Economic Inquiry, Western Economic Association International, vol. 45(4), pages 671-690, October.
  10. Nikiforakis, Nikos, 2008. "Punishment and counter-punishment in public good games: Can we really govern ourselves," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 91-112, February.
  11. Anderson, Christopher M. & Putterman, Louis, 2006. "Do non-strategic sanctions obey the law of demand? The demand for punishment in the voluntary contribution mechanism," Games and Economic Behavior, Elsevier, vol. 54(1), pages 1-24, January.
  12. Casari, Marco & Plott, Charles R., 2003. "Decentralized management of common property resources: experiments with a centuries-old institution," Journal of Economic Behavior & Organization, Elsevier, vol. 51(2), pages 217-247, June.
  13. Ernst Fehr & Simon Gaechter, 2003. "Altruistic Punishment in Humans," Microeconomics 0305006, EconWPA.
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Cited by:
  1. Fabio Galeotti, 2013. "On the Robustness of Emotions and Behavior in a Power-to-Take Game Experiment," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 13-07, School of Economics, University of East Anglia, Norwich, UK..
  2. Matthias Sutter & Stefan Haigner & Martin G. Kocher, 2010. "Choosing the Carrot or the Stick? Endogenous Institutional Choice in Social Dilemma Situations," Review of Economic Studies, Oxford University Press, vol. 77(4), pages 1540-1566.
  3. Nikos Nikiforakis & Hans-Theo Normann, 2008. "A comparative statics analysis of punishment in public-good experiments," Experimental Economics, Springer, vol. 11(4), pages 358-369, December.
  4. Martin Sefton & Robert S. Shupp & James Walker, 2005. "The Effect of Rewards and Sanctions in Provision of Public Goods," Working Papers 200504, Ball State University, Department of Economics, revised Feb 2005.
  5. Jeffrey Carpenter & Peter Hans Matthews, 2007. "What Norms Trigger Punishment," Middlebury College Working Paper Series 0708, Middlebury College, Department of Economics.
  6. Róbert F. Veszteg & Erita Narhetali, 2010. "Public-good games and the Balinese," International Journal of Social Economics, Emerald Group Publishing, vol. 37(9), pages 660-675, September.
  7. Casari, Marco & Luini, Luigi, 2009. "Cooperation under alternative punishment institutions: An experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 273-282, August.
  8. James Andreoni & Laura K. Gee, 2011. "Gun For Hire: Does Delegated Enforcement Crowd out Peer Punishment in Giving to Public Goods?," NBER Working Papers 17033, National Bureau of Economic Research, Inc.
  9. Denant-Boemont, L. & Masclet, D. & Noussair, C.N., 2007. "Punishment, counterpunishment, and sanction enforcement in a social dilemma experiment," Open Access publications from Tilburg University urn:nbn:nl:ui:12-284310, Tilburg University.
  10. Christoph Engel, 2013. "Deterrence by Imperfect Sanctions – A Public Good Experiment," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2013_09, Max Planck Institute for Research on Collective Goods.
  11. Andreoni, James & Gee, Laura K., 2012. "Gun for hire: Delegated enforcement and peer punishment in public goods provision," Journal of Public Economics, Elsevier, vol. 96(11), pages 1036-1046.
  12. Fabrice Le Lec & Astrid Matthey & Ondrej Rydval, 2012. "Punishment Fosters Efficiency in the Minimum Effort Coordination Game," Jena Economic Research Papers 2012-030, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  13. Nuria Osés-Eraso & Montserrat Viladrich-Grau, 2011. "The sustainability of the commons: giving and receiving," Experimental Economics, Springer, vol. 14(4), pages 458-481, November.
  14. Bin Xu & Bram Cadsby & Liangcong Fan & Fei Song, 2011. "Group Size, Coordination, and the Effectiveness of the Punishment Mechanism in the VCM: An Experimental Investigation," Working Papers 1110, University of Guelph, Department of Economics and Finance.
  15. Goeschl, Timo & Jarke, Johannes, 2013. "Non-Strategic Punishment when Monitoring is Costly: Experimental Evidence on Differences between Second and Third Party Behavior," Working Papers 0545, University of Heidelberg, Department of Economics.

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