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Establishing Cooperation between Groups: Ingroup versus Outgroup Punishment

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Author Info
Christian Stoff
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 Format: application/pdf
File Function: Revised version, 2006
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Publisher Info
Paper provided by University of Zurich, Socioeconomic Institute in its series 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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Related research
Keywords: conflicts; interethnic cooperation; ethnicity; intergroup relations; ingroup punishment; outgroup punishment;

Find related papers by JEL classification:
C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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