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On punishment and well-being

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  • Brandts, Jordi
  • Fernanda Rivas, María

Abstract

The existence of punishment opportunities has been shown to cause efficiency in some public goods experiments to increase considerably. In this paper we ask whether punishment also has a downside in terms of process dissatisfaction. We conduct an experiment to study the conjecture that an environment with strong punishment possibilities may lead to higher material payoffs but lower subjective well-being, in comparison with weaker punishment or no punishment possibilities at all. The more general motivation for our study stems from the notion that people's subjective well-being may be affected by the institutional environment they find themselves in. Our findings show that harsher punishment possibilities lead to significantly higher well-being, controlling for earnings and other relevant variables. These results complement the evidence on the neural basis of altruistic punishment reported in De Quervain et al. (2004).

Suggested Citation

  • Brandts, Jordi & Fernanda Rivas, María, 2009. "On punishment and well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 72(3), pages 823-834, December.
    • Handle: RePEc:eee:jeborg:v:72:y:2009:i:3:p:823-834
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    2. Lane, Tom, 2017. "How does happiness relate to economic behaviour? A review of the literature," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 68(C), pages 62-78.
    3. De Hoop, Thomas & Van Kempen, Luuk & Linssen, Rik & Van Eerdewijk, Anouka, 2010. "Women's Autonomy and Subjective Well-Being in India: How Village Norms Shape the Impact of Self-Help Groups," MPRA Paper 25921, University Library of Munich, Germany.
    4. Róbert F. Veszteg & Erita Narhetali, 2010. "Public‐good games and the Balinese," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(9), pages 660-675, August.

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    More about this item

    Keywords

    Public goods Experiments Well-being Punishment;

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D60 - Microeconomics - - Welfare Economics - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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