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Social Hierarchies: A Laboratory Study On Punishment Patterns Across Networks

Author

Listed:
  • Enrique Fatas
  • Miguel A. Meléndez‐Jiménez
  • Hector Solaz

Abstract

We experimentally study punishment patterns across network structures, and their effect on cooperation. In a repeated public goods setting, subjects can only observe and punish their neighbors. Centralized structures (like the star network) outperform other incomplete networks and reach contribution levels like the ones observed in a complete network. Our results suggest that hierarchical network structures with a commonly observed player benefit more from sanctions not because central players punish more, but because they follow, and promote, different punishment patterns. While quasi‐central players in other incomplete architectures (like the line network) retaliate, and get trapped in the vicious circle of antisocial punishment, central players in the star network do not punish back, increase their contributions when sanctioned by peripheral players, and sanction other participants in a prosocial manner. Our results illustrate recent field studies on the evolutionary prevalence of hierarchical networks. We document a network‐based rationale for this positive effect in an identity‐free, fully anonymous environment. (JEL C72, C91, C92, D90, H41)

Suggested Citation

  • Enrique Fatas & Miguel A. Meléndez‐Jiménez & Hector Solaz, 2020. "Social Hierarchies: A Laboratory Study On Punishment Patterns Across Networks," Economic Inquiry, Western Economic Association International, vol. 58(1), pages 104-119, January.
    • Handle: RePEc:bla:ecinqu:v:58:y:2020:i:1:p:104-119
    DOI: 10.1111/ecin.12766
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    Citations

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    Cited by:

    1. José Gabriel Castillo & Zhicheng Phil Xu & Ping Zhang & Xianchen Zhu, 2021. "The effects of centralized power and institutional legitimacy on collective action," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 56(2), pages 385-419, February.
    2. Brown, Christopher L., 2024. "Team production in endogenous networks," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 560-580.
    3. Fatas, Enrique & Morales, Antonio J. & Sonntag, Axel, 2020. "Empowering consumers to reduce corporate tax avoidance: Theory and Experiments," IHS Working Paper Series 21, Institute for Advanced Studies.
    4. Borzino, Natalia & Fatas, Enrique & Peterle, Emmanuel, 2023. "In transparency we trust an experimental study of reputation, transparency, and signaling," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 106(C).

    More about this item

    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
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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