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Establishing Cooperation between Groups: Ingroup versus Outgroup Punishment

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  • Christian Stoff
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    Abstract

    We analyse interethnic cooperation in an infinitely repeated prisoner’s dilemma when members of one group are unable to target punishment towards individual defectors from the other group. We first show that indiscriminate punishment may sustain cooperation in this setting. Our main result, however, is that the introduction of ingroup punishment in addition to outgroup punishment represents a better sanctioning institution in the sense that cooperative outcomes may persist in situations where outgroup punishment alone fails to induce cooperation. Our findings are consistent with historical evidence on the dynamics of interethnic conflicts.

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    File URL: http://www.soi.uzh.ch/research/wp/2004/wp0416.pdf
    File Function: Revised version, 2006
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    Bibliographic Info

    Paper provided by Socioeconomic Institute - University of Zurich in its series SOI - Working Papers with number 0416.

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    Length: 51 pages
    Date of creation: Dec 2004
    Date of revision: Feb 2006
    Handle: RePEc:soz:wpaper:0416

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    Keywords: conflicts; interethnic cooperation; ethnicity; intergroup relations; ingroup punishment; outgroup punishment;

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    1. Tirole, J., 1993. "A Theory of Collective Reputations with Applications to the Persistence of Corruption and to Firm Quality," Working papers 93-13, Massachusetts Institute of Technology (MIT), Department of Economics.
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    12. Eliana La Ferrara, . "Ethnicity and Reciprocity: A model of Credit Transactions in Ghana," Working Papers 193, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    13. Gary Bornstein, 2002. "Intergroup conflict: Individual, group and collective interests," Discussion Paper Series dp297, The Center for the Study of Rationality, Hebrew University, Jerusalem.
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