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Network Architecture and Mutual Monitoring in Public Goods Experiments

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Author Info

  • Carpenter, Jeffrey P.

    ()
    (Middlebury College)

  • Kariv, Shachar

    ()
    (University of California, Berkeley)

  • Schotter, Andrew

    ()
    (New York University)

Abstract

Recent experiments show that public goods can be provided at high levels when mutual monitoring and costly punishment are allowed. All these experiments, however, study monitoring and punishment in a setting where all agents can monitor and punish each other (i.e., in a complete network). The architecture of social networks becomes important when individuals can only monitor and punish the other individuals to whom they are connected by the network. We study several non-trivial network architectures that give rise to their own distinctive patterns of behavior. Nevertheless, a number of simple, yet fundamental, properties in graph theory allow us to interpret the variation in the patterns of behavior that arise in the laboratory and to explain the impact of network architecture on the efficiency and dynamics of the experimental outcomes.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5307.

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Length: 40 pages
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:iza:izadps:dp5307

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Related research

Keywords: experiment; networks; public good; monitoring; punishment;

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References

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  1. Jeffrey Carpenter & Peter Hans Matthews, 2007. "What Norms Trigger Punishment," Middlebury College Working Paper Series 0708, Middlebury College, Department of Economics.
  2. repec:rne:rneart:v:3:y:2004:i:1:p:19-41 is not listed on IDEAS
  3. David Masclet & Charles Noussair & Steven Tucker & Marie-Claire Villeval, 2003. "Monetary and Nonmonetary Punishment in the Voluntary Contributions Mechanism," American Economic Review, American Economic Association, vol. 93(1), pages 366-380, March.
  4. Jeffrey Carpenter, 2002. "Punishing Free Riders: how group size affects mutual monitoring and the provision of public goods," Middlebury College Working Paper Series 0206, Middlebury College, Department of Economics.
  5. Kosfeld Michael, 2004. "Economic Networks in the Laboratory: A Survey," Review of Network Economics, De Gruyter, vol. 3(1), pages 1-23, March.
  6. Nikiforakis, Nikos, 2008. "Punishment and counter-punishment in public good games: Can we really govern ourselves," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 91-112, February.
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Cited by:
  1. Theodore Eisenberg & Christoph Engel, 2012. "Assuring Adequate Deterrence in Tort: A Public Good Experiment," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2012_07, Max Planck Institute for Research on Collective Goods.

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