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Peer punishment with third-party approval in a social dilemma game

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  • Tan, Fangfang
  • Xiao, Erte

Abstract

This paper investigates how punishment promotes cooperation when the punishment enforcer is a third party independent of the implicated parties who propose the punishment. In a prisoner's dilemma experiment, we find an independent third party vetoes not only punishment to the cooperators but punishment to the defectors as well. Compared with the case when the implicated parties are allowed to punish each other, both the cooperation rate and the earnings are lower when the enforcement of punishment requires approval from an independent third party.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35473.

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Date of creation: 21 Dec 2011
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Handle: RePEc:pra:mprapa:35473

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

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References

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  1. Xiao, Erte, 2013. "Profit-seeking punishment corrupts norm obedience," Games and Economic Behavior, Elsevier, Elsevier, vol. 77(1), pages 321-344.
  2. 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.
  3. 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.
  4. Erte Xiao & Daniel Houser, 2005. "Emotion expression in human punishment behavior," Experimental, EconWPA 0504003, EconWPA, revised 18 May 2005.
  5. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, Springer, vol. 10(2), pages 171-178, June.
  6. Falk, Armin & Fehr, Ernst & Fischbacher, Urs, 2005. "Driving Forces Behind Informal Sanctions," IZA Discussion Papers 1635, Institute for the Study of Labor (IZA).
  7. 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.
  8. Ernst Fehr & Simon Gaechter, 1999. "Cooperation and Punishment in Public Goods Experiments," CESifo Working Paper Series 183, CESifo Group Munich.
  9. Nikiforakis, Nikos, 2008. "Punishment and counter-punishment in public good games: Can we really govern ourselves," Journal of Public Economics, Elsevier, Elsevier, vol. 92(1-2), pages 91-112, February.
  10. Ernst Fehr & Urs Fischbacher, 2004. "Third-party punishment and social norms," Experimental, EconWPA 0409002, EconWPA.
  11. Croson, Rachel & Konow, James, 2009. "Social preferences and moral biases," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 69(3), pages 201-212, March.
  12. 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, Elsevier, vol. 53(5), pages 495-511, July.
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Cited by:
  1. Kocher, Martin G. & Tan, Fangfang & Yu, Jing, 2014. "Providing global public goods: Electoral delegation and cooperation," Discussion Papers in Economics, University of Munich, Department of Economics 21163, University of Munich, Department of Economics.
  2. Fangfang Tan & Erte Xiao, 2014. "Third-Party Punishment: Retribution or Deterrence?," Working Papers, Max Planck Institute for Tax Law and Public Finance tax-mpg-rps-2014-05, Max Planck Institute for Tax Law and Public Finance.
  3. Erte Xiao & Fangfang Tan, 2014. "Justification and Legitimate Punishment," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, Mohr Siebeck, Tübingen, vol. 170(1), pages 168-188, March.

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