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Immaterial rewards and sanctions in a voluntary contribution experiment

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  • Peeters, Ronald
  • Vorsatz, Marc

    (METEOR)

Abstract

In this paper, we compare the cause and effect of immaterial rewards and sanctions oncooperation in a voluntary contributions experiment. We find that both rewards andsanctions increase contributions only when subjects interact repeatedly, though rewardsseem to be more effective than sanctions. Moreover, in contrast to sanctions, rewards dohave an impact on future contributions. Although the direct effect is negative, there is apositive indirect effect that applies to subjects who contribute above (below) the groupaverage in a partner (stranger) matching. From this we conclude that sanctions andrewards are mainly used as a communication channel to coordinate on a more efficientoutcome. Nevertheless, subjects also seem to experience additional utility from receivingapproval, whereas they are insensitive to disapprovals.

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Bibliographic Info

Paper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 005.

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Date of creation: 2009
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Handle: RePEc:dgr:umamet:2009005

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Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm

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Keywords: public economics ;

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  1. Jeannette Brosig & Axel Ockenfels & Joachim Weimann, 2002. "The Effect of Communication Media on Cooperation," Papers on Strategic Interaction 2002-17, Max Planck Institute of Economics, Strategic Interaction Group.
  2. Rege, Mari & Telle, Kjetil, 2004. "The impact of social approval and framing on cooperation in public good situations," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1625-1644, July.
  3. Sonnemans, Joep & Schram, Arthur & Offerman, Theo, 1999. "Strategic behavior in public good games: when partners drift apart," Economics Letters, Elsevier, vol. 62(1), pages 35-41, January.
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Cited by:
  1. Adam Zylbersztejn, 2013. "Strategic signaling or emotional sanctioning? An experimental study of ex post communication in a repeated public goods game," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00800587, HAL.
  2. López-Pérez, Raúl & Vorsatz, Marc, 2010. "On approval and disapproval: Theory and experiments," Journal of Economic Psychology, Elsevier, vol. 31(4), pages 527-541, August.
  3. Adam Zylbersztejn, 2013. "Strategic signaling or emotional sanctioning? An experimental study of ex post communication in a repeated public goods game," Documents de travail du Centre d'Economie de la Sorbonne 13011, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.

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