Cooperation limitations under a one-time threat of expulsion and punishment
AbstractWe examine the role one-time threats of expulsion and punishment have on voluntary contributions in a public goods game. This paper extends the work of Cinyabuguma, Page, and Putterman (2005), who find that the threat of expulsion in every period raises contributions to near Pareto Optimal levels. In our experiments, participants played in 15-round sessions where they were allowed to vote to remove other subjects only after round 5 and in one design also voted whether to punish the remaining subjects after round 10. We find that the additional threat of punishment not only increased the contributions of participants before the punishment vote, but also resulted in the expulsion of participants who had contributed more than in the no punishment treatment. Efficiency with expulsion is 58.07% without punishment, and 57.13% with punishment, including the cost for voting and punishment. Our findings indicate that the threat of expulsion as a sanctioning mechanism may not be helpful for public good provision unless expulsion can occur in every period, the threat of costly punishment increases contributions with little impact on efficiency, and that standards for inclusion rise when later punishment is available.
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Bibliographic InfoPaper provided by United States Naval Academy Department of Economics in its series Departmental Working Papers with number 33.
Length: 16 pages
Date of creation: Mar 2011
Date of revision:
Other versions of this item:
- Lowen, Aaron & Schmitt, Pamela, 2013. "Cooperation limitations under a one-time threat of expulsion and punishment," The Journal of Socio-Economics, Elsevier, vol. 44(C), pages 68-74.
- C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
- H40 - Public Economics - - Publicly Provided Goods - - - General
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-02 (All new papers)
- NEP-CBE-2011-04-02 (Cognitive & Behavioural Economics)
- NEP-EVO-2011-04-02 (Evolutionary Economics)
- NEP-GTH-2011-04-02 (Game Theory)
- NEP-PBE-2011-04-02 (Public Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Egas, Martijn & Riedl, Arno, 2005.
"The Economics of Altruistic Punishment and the Demise of Cooperation,"
IZA Discussion Papers
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- Martijn Egas & Arno Riedl, 2005. "The Economics of Altruistic Punishment and the Demise of Cooperation," Tinbergen Institute Discussion Papers 05-065/1, Tinbergen Institute.
- Martijn Egas & Arno Riedl, 2005. "The economics of altruistic punishment and the demise of cooperation," Artefactual Field Experiments 00040, The Field Experiments Website.
- Maier-Rigaud, Frank P. & Martinsson, Peter & Staffiero, Gianandrea, 2010.
"Ostracism and the provision of a public good: experimental evidence,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 73(3), pages 387-395, March.
- Frank P. Maier-Rigaud & Peter Martinsson & Gianandrea Staffiero, 2005. "Ostracism and the Provision of a Public Good, Experimental Evidence," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2005_24, Max Planck Institute for Research on Collective Goods.
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