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Legitimate punishment, feedback, and the enforcement of cooperation

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  • Faillo, Marco
  • Grieco, Daniela
  • Zarri, Luca

Abstract

In dealing with peer punishment as a cooperation enforcement device, laboratory studies have typically concentrated on discretionary sanctioning, allowing players to castigate each other arbitrarily. By contrast, in real life punishments are often meted out only insofar as punishers are entitled to punish and punishees deserve to be punished. We provide an experimental test for this ‘legitimate punishment’ institution and show that it yields substantial benefits to cooperation and efficiency gains, compared to a classic, ‘vigilante justice’ institution. We also focus on the role of feedback and we interestingly find that removing the information over high contributorsʼ choices is sufficient to generate a dramatic decline in cooperation rates and earnings. This interaction result implies that providing feedback over virtuous behavior in the group is necessary to make a legitimate punishment scheme effective.

Suggested Citation

  • Faillo, Marco & Grieco, Daniela & Zarri, Luca, 2013. "Legitimate punishment, feedback, and the enforcement of cooperation," Games and Economic Behavior, Elsevier, vol. 77(1), pages 271-283.
  • Handle: RePEc:eee:gamebe:v:77:y:2013:i:1:p:271-283
    DOI: 10.1016/j.geb.2012.10.011
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    Cited by:

    1. Laura K. Gee & Xinxin Lyu & Heather Urry, 2017. "Anger Management: Aggression and Punishment in the Provision of Public Goods," Games, MDPI, Open Access Journal, vol. 8(1), pages 1-28, January.
    2. DeAngelo, Gregory & Gee, Laura Katherine, 2018. "Peers or Police? Detection and Sanctions in the Provision of Public Goods," IZA Discussion Papers 11540, Institute for the Study of Labor (IZA).
    3. Oliver Kirchkamp & Wladislaw Mill, 2018. "Conditional Cooperation and the Effect of Punishment," CESifo Working Paper Series 7115, CESifo Group Munich.
    4. Mike Farjam & Marco Faillo & Ida Sprinkhuizen-Kuyper & Pim Haselager, 2015. "Punishment Mechanisms and Their Effect on Cooperation: A Simulation Study," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 18(1), pages 1-5.
    5. Erte Xiao & Howard Kunreuther, 2016. "Punishment and Cooperation in Stochastic Social Dilemmas," Journal of Conflict Resolution, Peace Science Society (International), vol. 60(4), pages 670-693, June.
    6. Faillo, Marco & Grieco, Daniela & Zarri, Luca, 2012. "Cultural Diversity, Cooperation,and Anti-social Punishment," AICCON Working Papers 102-2012, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    7. Daniela Grieco & Marco Faillo & Luca Zarri, 2013. "Top Contributors as Punishers," Working Papers 24/2013, University of Verona, Department of Economics.
    8. repec:eee:joepsy:v:61:y:2017:i:c:p:55-73 is not listed on IDEAS
    9. Daniela Grieco & Michela Braga & Francesco Bripi, 2016. "Cooperation and leadership in a segregated community: Evidence from a lab-in-the-field experiment in a South African township," WIDER Working Paper Series 076, World Institute for Development Economic Research (UNU-WIDER).
    10. repec:eee:ecolet:v:157:y:2017:i:c:p:41-44 is not listed on IDEAS
    11. Daniel Villatoro & Giulia Andrighetto & Rosaria Conte & Jordi Sabater-Mir, 2015. "Self-Policing Through Norm Internalization: A Cognitive Solution to the Tragedy of the Digital Commons in Social Networks," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 18(2), pages 1-2.

    More about this item

    Keywords

    Public goods games; Cooperation; Legitimate punishment; Feedback; Behavioral mechanism design;

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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