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Peer Punishment with Third-Party Approval in a Social Dilemma Game

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Author Info

  • Fangfang Tan
  • Erte Xiao

Abstract

This paper investigates how punishment promotes cooperation when the punishment enforcer is independent of its proposer. In a prisoner's dilemma experiment, compared with the case when the implicated parties are allowed to punish each other, cooperation is lower when the enforcement of punishment requires approval from an independent third party. Our data show that the independent third party mitigates the severity of punishment and consequently diminishes the effectiveness of punishment on promoting cooperation when antisocial punishment proposals are rare.

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File URL: http://www.tax.mpg.de/RePEc/mpi/wpaper/Tax-MPG-RPS-2011-16.pdf
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Bibliographic Info

Paper provided by Max Planck Institute for Tax Law and Public Finance in its series Working Papers with number peer_punishment_with_third_party.

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Length: 17 pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:mpi:wpaper:peer_punishment_with_third_party

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Keywords: Social dilemmas; third party; punishment; cooperation; experiment;

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References

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  1. Robin P. Cubitt & Michalis Drouvelis & Simon Gaechter & Ruslan Kabalin, 2010. "Moral Judgments in Social Dilemmas: How Bad is Free Riding?," CESifo Working Paper Series 3230, CESifo Group Munich.
  2. Ernst Fehr & Simon Gaechter, . "Cooperation and Punishment in Public Goods Experiments," IEW - Working Papers 010, Institute for Empirical Research in Economics - University of Zurich.
  3. Ertan, Arhan & Page, Talbot & Putterman, Louis, 2009. "Who to punish? Individual decisions and majority rule in mitigating the free rider problem," European Economic Review, Elsevier, vol. 53(5), pages 495-511, July.
  4. Ernst Fehr & Urs Fischbacher, . "Third Party Punishment and Social Norms," IEW - Working Papers 106, Institute for Empirical Research in Economics - University of Zurich.
  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. Astrid Hopfensitz & Ernesto Reuben, 2005. "The Importance of Emotions for the Effectiveness of Social Punishment," Discussion Papers 06-09, University of Copenhagen. Department of Economics, revised Mar 2006.
  7. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
  8. Falk, Armin & Fehr, Ernst & Fischbacher, Urs, 2005. "Driving Forces Behind Informal Sanctions," IZA Discussion Papers 1635, Institute for the Study of Labor (IZA).
  9. 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.
  10. Xiao, Erte, 2013. "Profit-seeking punishment corrupts norm obedience," Games and Economic Behavior, Elsevier, vol. 77(1), pages 321-344.
  11. Erte Xiao & Daniel Houser, 2005. "Emotion expression in human punishment behavior," Experimental 0504003, EconWPA, revised 18 May 2005.
  12. Croson, Rachel & Konow, James, 2009. "Social preferences and moral biases," Journal of Economic Behavior & Organization, Elsevier, vol. 69(3), pages 201-212, March.
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Citations

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Cited by:
  1. Erte Xiao & Fangfang Tan, 2014. "Justification and Legitimate Punishment," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 170(1), pages 168-188, March.

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