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Sanctions that Signal: an Experiment

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  • Roberto Galbiatiy
  • Karl Schlagz
  • Joel van der Weele

Abstract

The introduction of sanctions provides incentives for more pro-social behavior, but may also be a signal that non-cooperation is prevalent. In an experimental minimum-effort coordination game we investigate the effects of the information contained in the choice to sanction. We compare the effect of sanctions that are introduced exogenously by the experimenter to that of sanctions which have been actively chosen by a subject who has superior information about the previous effort of the other players. We find that cooperative subjects perceive actively chosen sanctions as a negative signal which significantly reduces the effect of sanctions.

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Bibliographic Info

Paper provided by David K. Levine in its series Levine's Working Paper Archive with number 661465000000001104.

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Date of creation: 14 Dec 2010
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Handle: RePEc:cla:levarc:661465000000001104

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  1. Roland Benabou & Jean Tirole, 2011. "Laws and Norms," NBER Working Papers 17579, National Bureau of Economic Research, Inc.
  2. Miguel A. Costa-Gomes & Vincent P. Crawford, 2006. "Cognition and Behavior in Two-Person Guessing Games: An Experimental Study," Levine's Bibliography 321307000000000336, UCLA Department of Economics.
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  17. Sliwka, Dirk, 2006. "Trust as a Signal of a Social Norm and the Hidden Costs of Incentive Schemes," IZA Discussion Papers 2293, Institute for the Study of Labor (IZA).
  18. Giovanna Devetag & Andreas Ortmann, 2006. "When and Why? A Critical Survey on Coordination Failure in the Laboratory," CEEL Working Papers 0605, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
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Cited by:
  1. Roland Benabou & Jean Tirole, 2011. "Laws and Norms," NBER Working Papers 17579, National Bureau of Economic Research, Inc.
  2. Danilov, Anastasia & Sliwka, Dirk, 2013. "Can Contracts Signal Social Norms? Experimental Evidence," IZA Discussion Papers 7477, Institute for the Study of Labor (IZA).
  3. Galbiati, Roberto & Vertova, Pietro, 2014. "How laws affect behavior: Obligations, incentives and cooperative behavior," International Review of Law and Economics, Elsevier, vol. 38(C), pages 48-57.

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