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Voting on Punishment Systems within a Heterogeneous Group

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Author Info
Charles Noussair ()
Fangfang Tan ()

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Abstract

We consider a voluntary contributions game, in which players may punish others after contributions are made and observed. The productivity of contributions, as captured in the marginal-per-capita return, differs among individuals, so that there are two types: high and low productivity. Every two or eight periods, depending on the treatment, individuals vote on a punishment regime, in which certain individuals are permitted, but not required, to have punishment directed toward them. The punishment system can condition on type and contribution history. The results indicate that the most effective regime, in terms of contributions and earnings, is one that allows punishment of low contributors only, regardless of productivity. Nevertheless, only a minority of sessions converge to this system, indicating a tendency for the voting process to lead to suboptimal institutional choice.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 2763.

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Date of creation: 2009
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Handle: RePEc:ces:ceswps:_2763

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Related research
Keywords: voting; punishment; voluntary contributions; heterogeneity; experiment;

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Find related papers by JEL classification:
C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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  29. Masclet, D. & Noussair, C. & Tucker, S. & Villeval, M.C., 2001. "Monetary and Non-monetary Punishment in the Voluntary Contributions Mechanism," Purdue University Economics Working Papers 1141, Purdue University, Department of Economics.
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  30. Francesco Cinnirella & Joachim Winter, 2009. "Size Matters! Body Height and Labor Market Discrimination: A Cross-European Analysis," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  33. Yu-Fu Chen & Michael Funke, 2009. "Booms, Recessions and Financial Turmoil: A Fresh Look at Investment Decisions under Cyclical Uncertainty," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  34. Kurt Schmidheiny & Marius Brülhart, 2009. "On the Equivalence of Location Choice Models: Conditional Logit, Nested Logit and Poisson," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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Full references

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  13. Charles Noussair & Fangfang Tan, 2009. "Voting on Punishment Systems within a Heterogeneous Group," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  14. Thiess Buettner & Clemens Fuest, 2009. "The Role of the Corporate Income Tax as an Automatic Stabilizer," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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