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Sanctions that signal: An experiment

Author

Listed:
  • Roberto Galbiati

    (Département d'économie (ECON))

  • Karl Schlag

    (Universität Wien)

  • Joël van der Weele

Abstract

The introduction of sanctions provides incentives for more pro-social behavior, but may also be a signal that non-cooperation is prevalent. In an experimental minimum-effort coordination game we investigate the effects of the information contained in the choice to sanction. We compare the effect of sanctions that are introduced exogenously by the experimenter to that of sanctions which have been actively chosen by a subject who has superior information about the previous effort of the other players. We find that cooperative subjects perceive actively chosen sanctions as a negative signal which significantly reduces the effect of sanctions.

Suggested Citation

  • Roberto Galbiati & Karl Schlag & Joël van der Weele, 2013. "Sanctions that signal: An experiment," Sciences Po publications info:hdl:2441/7o52iohb7k6, Sciences Po.
    • Handle: RePEc:spo:wpmain:info:hdl:2441/7o52iohb7k6srk09o0ks2e12i
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    More about this item

    Keywords

    Sanctions; Beliefs; Expressive law; Deterrence; Coordination; Minimum-effort-game;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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