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Who to punish? Individual decisions and majority rule in mitigating the free rider problem

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Listed author(s):
  • Ertan, Arhan
  • Page, Talbot
  • Putterman, Louis

Abstract

We study a voluntary contributions mechanism in which punishment may be allowed, depending on subjects' voted rules. We found that out of 160 group votes, even when groups had no prior experience with unrestricted punishment, no group ever voted to allow unrestricted punishment and no group ever allowed punishment of high contributors. Over a series of votes and periods of learning we found a distinct reluctance to allow any punishment at the beginning, with a gradual but clear evolution toward allowing punishment of low contributors. And groups allowing punishment of only low contributors achieved levels of cooperation and efficiency that are among the highest in the literature on social dilemmas.

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Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 53 (2009)
Issue (Month): 5 (July)
Pages: 495-511

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Handle: RePEc:eee:eecrev:v:53:y:2009:i:5:p:495-511
Contact details of provider: Web page: http://www.elsevier.com/locate/eer

Keywords: Public goods Collective action Punishment Voting Institutions;

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  7. Anabela Botelho & Glenn W. Harrison & Lígia Costa Pinto & Elisabet E. Rutstrom, 2005. "Social norms and social choice," NIMA Working Papers 30, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
  8. Bochet, Olivier & Page, Talbot & Putterman, Louis, 2006. "Communication and punishment in voluntary contribution experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 60(1), pages 11-26, May.
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  17. Matthias Cinyabuguma & Talbot Page & Louis Putterman, 2006. "Can second-order punishment deter perverse punishment?," Experimental Economics, Springer;Economic Science Association, vol. 9(3), pages 265-279, September.
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