Advanced Search
MyIDEAS: Login to save this paper or follow this series

In the long-run we are all dead: On the benefits of peer punishment in rich environments

Contents:

Author Info

  • Engelmann, Dirk
  • Nikiforakis, Nikos

Abstract

We investigate whether peer punishment is an efficient mechanism for enforcing cooperation in an experiment with a long time horizon. Previous evidence suggests that the costs of peer punishment can be outweighed by the benefits of higher cooperation, if (i ) there is a sufficiently long time horizon and (ii ) punishment cannot be avenged. However, in most instances in daily life, when individuals interact for an extended period of time, punishment can be retaliated. We use a design that imposes minimal restrictions on who can punish whom or when, and allows participants to employ a wide range of punishment strategies including retaliation of punishment. Similar to previous research, we find that, when punishment cannot be avenged, peer punishment leads to higher earnings relative to a baseline treatment without any punishment opportunities. However, in the more general setting, we find no evidence of group earnings increasing over time relative to the baseline treatment. Our results raise questions under what conditions peer punishment can be an efficient mechanism for enforcing cooperation.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: https://ub-madoc.bib.uni-mannheim.de/32651/1/Engelmann_%26_Nikiforakis.pdf
Download Restriction: no

Bibliographic Info

Paper provided by University of Mannheim, Department of Economics in its series Working Papers with number 32651.

as in new window
Length:
Date of creation: 2012
Date of revision:
Handle: RePEc:mnh:wpaper:32651

Contact details of provider:
Postal: 68131 Mannheim
Phone: +49 621 181 1776
Fax: +49 621 181 1774
Email:
Web page: http://www2.vwl.uni-mannheim.de/10.1.html
More information through EDIRC

Related research

Keywords: altruistic punishment ; counter-punishment ; public good game ; feuds;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Nikos Nikiforakis & Hans-Theo Normann, 2008. "A comparative statics analysis of punishment in public-good experiments," Experimental Economics, Springer, vol. 11(4), pages 358-369, December.
  2. Putterman, Louis & Tyran, Jean-Robert & Kamei, Kenju, 2011. "Public goods and voting on formal sanction schemes," Journal of Public Economics, Elsevier, vol. 95(9), pages 1213-1222.
  3. Ernesto Reuben & Arno Riedl, 2009. "Enforcement of Contribution Norms in Public Good Games with Heterogeneous Populations," CESifo Working Paper Series 2725, CESifo Group Munich.
  4. Attila Ambrus & Ben Greiner, 2011. "Imperfect public monitoring with costly punishment - An experimental study," Discussion Papers 2011-10, School of Economics, The University of New South Wales.
  5. 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.
  6. Denant-Boemont, L. & Masclet, D. & Noussair, C.N., 2007. "Punishment, counterpunishment, and sanction enforcement in a social dilemma experiment," Open Access publications from Tilburg University urn:nbn:nl:ui:12-284310, Tilburg University.
  7. R. M Isaac & J. Walker & A. Williams, 2010. "Group Size and the Voluntary Provision of Public Goods: Experimental Evidence Utilizing Very Large Groups," Levine's Working Paper Archive 11, David K. Levine.
  8. Nikiforakis, Nikos & Engelmann, Dirk, 2011. "Altruistic punishment and the threat of feuds," Journal of Economic Behavior & Organization, Elsevier, vol. 78(3), pages 319-332, May.
  9. Kristoffel Grechenig & Andreas Nicklisch & Christian Thöni, 2010. "Punishment despite Reasonable Doubt – A Public Goods Experiment with Uncertainty over Contributions," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2010_11, Max Planck Institute for Research on Collective Goods.
  10. Simon Gachter & Ernst Fehr, 2000. "Cooperation and Punishment in Public Goods Experiments," American Economic Review, American Economic Association, vol. 90(4), pages 980-994, September.
  11. Balafoutas, Loukas & Nikiforakis, Nikos, 2012. "Norm enforcement in the city: A natural field experiment," European Economic Review, Elsevier, vol. 56(8), pages 1773-1785.
  12. Nikiforakis, Nikos & Noussair, Charles N. & Wilkening, Tom, 2012. "Normative conflict and feuds: The limits of self-enforcement," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 797-807.
  13. Talbot Page & Louis Putterman & Bulent Unel, 2005. "Voluntary Association in Public Goods Experiments: Reciprocity, Mimicry and Efficiency," Economic Journal, Royal Economic Society, vol. 115(506), pages 1032-1053, October.
  14. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
  15. Nikos Nikiforakis & Charles N. Noussair & Tom Wilkening, 2011. "Normative Conflict & Feuds: The Limits of Self-Enforcement," Department of Economics - Working Papers Series 1120, The University of Melbourne.
  16. Bochet, Olivier & Putterman, Louis, 2009. "Not just babble: Opening the black box of communication in a voluntary contribution experiment," European Economic Review, Elsevier, vol. 53(3), pages 309-326, April.
  17. 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.
  18. Ben Greiner, 2004. "The Online Recruitment System ORSEE - A Guide for the Organization of Experiments in Economics," Papers on Strategic Interaction 2003-10, Max Planck Institute of Economics, Strategic Interaction Group.
  19. Francesco GUALA, 2010. "Reciprocity: weak or strong? What punishment experiments do (and do not) demonstrate," Departmental Working Papers 2010-23, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  20. Isaac, R. Mark & Walker, James M. & Williams, Arlington W., 1994. "Group size and the voluntary provision of public goods : Experimental evidence utilizing large groups," Journal of Public Economics, Elsevier, vol. 54(1), pages 1-36, May.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Nikos Nikiforakis & Helen Mitchell, 2014. "Mixing the carrots with the sticks: third party punishment and reward," Experimental Economics, Springer, vol. 17(1), pages 1-23, March.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:mnh:wpaper:32651. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Katharina Rautenberg).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.