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Noncooperative Support of Public Norm Enforcement in Large Societies Author info | Abstract | Publisher info | Download info | Related research | Statistics Josef Falkinger ()
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In small groups norm enforcement is provided by mutual punishment and reward. In large societies we have enforcement institutions. This paper shows how such institutions can emerge as a decentralized equilibrium. In a first stage, individuals invest in a public enforcement technology. This technology generates a sanctioning system whose effectiveness depends on the aggregate amount of invested resources. In a second stage, in which individuals contribute to the provision of a public good, the sanctioning system imposes penalties and rewards on deviations from the endogenous norm contribution. It is shown that even if group size goes to infinity public norm enforcement is supported in a noncooperative equilibrium. Psychological factors are not necessary but can be favorable for the emergence of effective public norm enforcement.
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number
CESifo Working Paper No. 1368.
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Date of creation: 2004Date of revision:
Handle: RePEc:ces:ceswps:_1368Contact details of provider: Postal: Poschingerstrasse 5, 81679 Munich Phone: +49 (89) 9224-0 Fax: +49 (89) 985369 Web page: http://www.cesifo.de
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Keywords: norm enforcement ; public goods ; institutions ; sanctioning ; Other versions of this item:
Find related papers by JEL classification: H41 - Public Economics - - Publicly Provided Goods - - - Public Goods K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology
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