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Sticks and carrots: Two incentive mechanisms supporting intra-group cooperation

  • Janus, Thorsten
  • Lim, Jamus Jerome

In this note, we introduce two distinct incentive mechanisms that support dynamic intra-group cooperation in the context of prisoner's dilemma payoffs: rewards for cooperating, and punishments for defection, where the rewarding or punishing party may be outside the relationship.

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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 102 (2009)
Issue (Month): 3 (March)
Pages: 177-180

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Handle: RePEc:eee:ecolet:v:102:y:2009:i:3:p:177-180
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  7. Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-64, July.
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