Punishment and Counter-punishment in Public Goods Games: Can we still govern ourselves?
AbstractIn the public goods literature, there have been recently a number of experiments which demonstrate how the problem of the under-provision of a public good can be solved through mutual monitoring and sanctioning between the members of a group when antisocial behavior is observed. In many circumstances, however, we can not allow for punishment and exclude the possibility of counter-punishment occurring. We design a public goods experiment based on Fehr and Gaechter (2000) where we allow for both punishment and counter-punishment. We find that in both Partner and Stranger treatments average contributions decline steadily over time, at a rate similar to the treatment were no punishment was allowed, and tend towards full free-riding. The reason for this change seems to be that under the threat of counter-punishment people are less willing to punish. An important result is that participants squander their endowment in punishment and counter-punishment actions leading to a relative payoff loss, in comparison to the treatment without punishments.
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Bibliographic InfoPaper provided by EconWPA in its series Experimental with number 0403001.
Length: 45 pages
Date of creation: 05 Mar 2004
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punishment; counter-punishment; public goods games; free- riding;
Other versions of this item:
- Nikos Nikiforakis, 2004. "Punishment and Counter-punishment in Public Goods Games: Can we still govern ourselves?," Royal Holloway, University of London: Discussion Papers in Economics 04/05, Department of Economics, Royal Holloway University of London, revised Apr 2004.
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-03-07 (All new papers)
- NEP-CBE-2004-03-07 (Cognitive & Behavioural Economics)
- NEP-EXP-2004-03-07 (Experimental Economics)
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