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Does Stake Size matter for Cooperation and Punishment?

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  • Martin G. Kocher

    ()
    (CREED, Universiteit van Amsterdam)

  • Peter Martinsson

    ()
    (G�teborg University, Sweden)

  • Martine Visser

    ()
    (G�teborg University, Sweden)

Abstract

The effects of stake size on cooperation and punishment are investigated using a public goods experiment. We find that an increase in stake size does neither significantly affect cooperation nor, interestingly, the level of punishment.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 06-104/1.

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Date of creation: 22 Nov 2006
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Handle: RePEc:dgr:uvatin:20060104

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Web page: http://www.tinbergen.nl

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Keywords: experiment; public goods; punishment; stake size;

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  1. Camerer, Colin F. & Hogarth, Robin M., 1999. "The Effects of Financial Incentives in Experiments: A Review and Capital-Labor-Production Framework," Working Papers, California Institute of Technology, Division of the Humanities and Social Sciences 1059, California Institute of Technology, Division of the Humanities and Social Sciences.
  2. Simon Gaechter & Benedikt Herrmann, 2006. "The limits of self-governance in the presence of spite: Experimental evidence from urban and rural Russia," Discussion Papers, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham 2006-13, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  3. Johansson-Stenman, Olof & Mahmud, Minhaj & Martinsson, Peter, 2004. "Does stake size matter in trust games?," Working Papers in Economics 140, University of Gothenburg, Department of Economics.
  4. Carpenter, Jeffrey & Verhoogen, Eric & Burks, Stephen, 2005. "The effect of stakes in distribution experiments," Economics Letters, Elsevier, vol. 86(3), pages 393-398, March.
  5. Lisa Cameron, 1995. "Raising the Stakes in the Ultimatum Game: Experimental Evidence From Indonesia," Working Papers 724, Princeton University, Department of Economics, Industrial Relations Section..
  6. Smith, Vernon L & Walker, James M, 1993. "Rewards, Experience and Decision Costs in First Price Auctions," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 31(2), pages 237-45, April.
  7. Carpenter, Jeffrey P., 2007. "The demand for punishment," Journal of Economic Behavior & Organization, Elsevier, vol. 62(4), pages 522-542, April.
  8. James M. Walker & Matthew A. Halloran, 2004. "Rewards and Sanctions and the Provision of Public Goods in One-Shot Settings," Experimental Economics, Springer, Springer, vol. 7(3), pages 235-247, October.
  9. Robert Slonim & Alvin E. Roth, 1998. "Learning in High Stakes Ultimatum Games: An Experiment in the Slovak Republic," Econometrica, Econometric Society, Econometric Society, vol. 66(3), pages 569-596, May.
  10. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
  11. Ernst Fehr & Simon Gaechter, . "Cooperation and Punishment in Public Goods Experiments," IEW - Working Papers 010, Institute for Empirical Research in Economics - University of Zurich.
  12. Clark, Kenneth & Sefton, Martin, 2001. "The Sequential Prisoner's Dilemma: Evidence on Reciprocation," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 111(468), pages 51-68, January.
  13. Louis Putterman & Christopher M. Anderson, 2003. "Do Non-strategic Sanctions Obey the Law of Demand? The Demand for Punishment in the Voluntary Contribution Mechanism," Working Papers 2003-15, Brown University, Department of Economics.
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Cited by:
  1. Lefèbvre, Mathieu & Vieider, Ferdinand M. & Villeval, Marie Claire, 2009. "Incentive Effects on Risk Attitude in Small Probability Prospects," IZA Discussion Papers 4545, Institute for the Study of Labor (IZA).
  2. Daniel Arce & Sneha Bakshi & Rachel Croson & Catherine Eckel & Enrique Fatas & Malcolm Kass, 2011. "Counterterrorism strategies in the lab," Public Choice, Springer, Springer, vol. 149(3), pages 465-478, December.
  3. Kocher, Martin G. & Martinsson, Peter & Visser, Martine, 2012. "Social background, cooperative behavior, and norm enforcement," Munich Reprints in Economics, University of Munich, Department of Economics 18163, University of Munich, Department of Economics.
  4. Eckel, Catherine & Gintis, Herbert, 2010. "Blaming the messenger: Notes on the current state of experimental economics," Journal of Economic Behavior & Organization, Elsevier, vol. 73(1), pages 109-119, January.
  5. Ralph-C. Bayer & Elke Renner & Rupert Sausgruber, 2013. "Confusion and learning in the voluntary contributions game," Experimental Economics, Springer, Springer, vol. 16(4), pages 478-496, December.
  6. Martinsson, Peter & Villegas-Palacio, Clara & Wollbrant, Conny, 2009. "Conditional Cooperation and Social Group - Experimental results from Colombia," Working Papers in Economics 372, University of Gothenburg, Department of Economics.
  7. Hasson, Reviva & Löfgren, Åsa & Visser, Martine, 2010. "Climate change in a public goods game: Investment decision in mitigation versus adaptation," Ecological Economics, Elsevier, vol. 70(2), pages 331-338, December.
  8. Kyung Hwan Baik & Subhasish M. Chowdhury & Abhijit Ramalingam, 2014. "Resources for Conflict: Constraint or Wealth?," University of East Anglia Applied and Financial Economics Working Paper Series, School of Economics, University of East Anglia, Norwich, UK. 061, School of Economics, University of East Anglia, Norwich, UK..
  9. Klarizze Anne Puzon & Marc Willinger, 2014. "WHY MY PARTICIPATION MATTERS: Rent-seeking with endogenous prize determination," Working Papers, LAMETA, Universtiy of Montpellier 14-05, LAMETA, Universtiy of Montpellier, revised Jun 2014.
  10. Robert Oxoby, 2013. "Paretian dictators: constraining choice in a voluntary contribution game," Constitutional Political Economy, Springer, Springer, vol. 24(2), pages 125-138, June.

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