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Individual Heterogeneity in Punishment and Reward

Author

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  • Leibbrandt, Andreas

    (Department of Economics, University of Chicago)

  • López-Pérez, Raúl

    (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.)

Abstract

We design experiments to study the extent to which individuals differ in their motivations behind costly punishment and rewarding. Our findings qualify existing evidence and suggest that the largest fraction of players is motivated by a mixture of both inequity-aversion and reciprocity, while smaller fractions are primarily motivated by pure inequity-aversion and pure reciprocity. These findings provide new insights into the literature on other-regarding preferences and may help to reconcile important phenomena reported in the experimental literature on punishment and reward.

Suggested Citation

  • Leibbrandt, Andreas & López-Pérez, Raúl, 2011. "Individual Heterogeneity in Punishment and Reward," Working Papers in Economic Theory 2011/01, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    • Handle: RePEc:uam:wpaper:201101
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    File URL: http://www.uam.es/departamentos/economicas/analecon/especifica/mimeo/wp20111.pdf
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    References listed on IDEAS

    as
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    2. Goeschl, Timo & Jarke, Johannes, 2013. "Non-Strategic Punishment when Monitoring is Costly: Experimental Evidence on Differences between Second and Third Party Behavior," Working Papers 0545, University of Heidelberg, Department of Economics.

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    More about this item

    Keywords

    Heterogeneity; inequity aversion; monetary punishment/reward; reciprocity; social norms.;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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