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Incomplete Punishment Networks in Public Goods Games: Experimental Evidence

Author

Listed:
  • Andreas Leibbrandt

    (Monash University)

  • Abhijit Ramalingam

    (University of East Anglia)

  • Lauri Saaksvuori

    (Hamburg University)

  • James M. Walker

    (Indiana University)

Abstract

Abundant evidence suggests that high levels of contributions to public goods can be sustained through self-governed monitoring and sanctions. This experimental study investigates the effectiveness of decentralized sanctioning institutions in alternative punishment networks. Our results show that the structure of punishment network significantly affects allocations to the public good. In addition, we observe that network configurations are more important than punishment capacities for the levels of public good provision, imposed sanctions and economic efficiency. We show that targeted revenge is a major driver of anti-social punishment.

Suggested Citation

  • Andreas Leibbrandt & Abhijit Ramalingam & Lauri Saaksvuori & James M. Walker, 2013. "Incomplete Punishment Networks in Public Goods Games: Experimental Evidence," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 13-09, School of Economics, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:wcbess:13-09
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    Cited by:

    1. Boosey, Luke A., 2017. "Conditional cooperation in network public goods experiments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 69(C), pages 108-116.
    2. Mantilla, César, 2015. "Communication networks in common-pool resource games: Field experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 215-226.
    3. Nicklisch, Andreas & Grechenig, Kristoffel & Thöni, Christian, 2016. "Information-sensitive Leviathans," Journal of Public Economics, Elsevier, vol. 144(C), pages 1-13.
    4. Boris van Leeuwen & Theo Offerman & Arthur Schram, 2020. "Competition for Status Creates Superstars: an Experiment on Public Good Provision and Network Formation," Journal of the European Economic Association, European Economic Association, vol. 18(2), pages 666-707.
    5. Boris Leeuwen & Abhijit Ramalingam & David Rojo Arjona & Arthur Schram, 2019. "Centrality and cooperation in networks," Experimental Economics, Springer;Economic Science Association, vol. 22(1), pages 178-196, March.
    6. Liu, Penghui & Liu, Jing, 2017. "Contribution diversity and incremental learning promote cooperation in public goods games," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 486(C), pages 827-838.
    7. Enrique Fatas & Miguel Meléndez-Jiménez & Antonio Morales & Hector Solaz, 2015. "Public goods and decay in networks," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 6(1), pages 73-90, March.
    8. Boosey, Luke & Mark Isaac, R., 2016. "Asymmetric network monitoring and punishment in public goods experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 26-41.
    9. Luke Boosey & R. Mark Isaac, 2014. "Network Monitoring and Punishment in Public Goods Experiments," Working Papers wp2014_12_01, Department of Economics, Florida State University.
    10. Ramalingam, Abhijit & Rojo Arjona, David & Schram, Arthur & Van Leeuwen, Boris, 2015. "Authority and Centrality: Power and Cooperation in Social Dilemma Networks," IAST Working Papers 15-23, Institute for Advanced Study in Toulouse (IAST).
    11. DeAngelo, Gregory & Gee, Laura Katherine, 2018. "Peers or Police? Detection and Sanctions in the Provision of Public Goods," IZA Discussion Papers 11540, Institute of Labor Economics (IZA).
    12. Ananish Chaudhuri, 2018. "Belief Heterogeneity and the Restart Effect in a Public Goods Game," Games, MDPI, vol. 9(4), pages 1-20, November.
    13. Georg Kanitsar, 2021. "Self-Governance in Generalized Exchange. A Laboratory Experiment on the Structural Embeddedness of Peer Punishment," Games, MDPI, vol. 12(2), pages 1-16, June.
    14. Serdarevic, Nina & Strømland, Eirik & Tjøtta, Sigve, 2021. "It pays to be nice: The benefits of cooperating in markets," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
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    More about this item

    Keywords

    public goods experiment; punishment; cooperation; networks;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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