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Cooperation limitations under a one-time threat of expulsion and punishment

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  • Lowen, Aaron
  • Schmitt, Pamela

Abstract

We examine the impact of one-time threats of expulsion and punishment on voluntary contributions in a public goods game. Participants played in 15-round sessions where they were allowed to vote to remove other subjects only after round 5 and in one design also voted whether to punish the remaining subjects after round 10. Consistent with the literature, we find that an additional threat of punishment increases the contributions of participants before the punishment vote. The literature shows that frequent threats of expulsion may increase efficiency in the provision of public goods. In realistic settings, however, opportunities for expulsion are limited whereas threats of non-expulsive punishments are common. We find the threat of costly punishment increases contributions with little impact on efficiency (57.1% versus 58.1%), and that standards for inclusion rise when later punishment is available.

Suggested Citation

  • Lowen, Aaron & Schmitt, Pamela, 2013. "Cooperation limitations under a one-time threat of expulsion and punishment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 44(C), pages 68-74.
  • Handle: RePEc:eee:soceco:v:44:y:2013:i:c:p:68-74
    DOI: 10.1016/j.socec.2013.02.017
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    Cited by:

    1. Aurélie Bonein & Cécile Bazart, 2017. "The Strength of the Symbol: Are we Willing to Punish Evaders ?," Working Papers 17-02, LAMETA, Universtiy of Montpellier.
    2. Cécile Bazart & Dimitri Dubois & Kate Farrow & Lisette Ibanez & Alain Marciano & Nathalie Moureau & Rustam Romaniuc & Julie Rosaz & Sébastien Roussel, 2017. "NORMES : NORmes sociales, Motivations Externes et internes, et politiques publiqueS," Working Papers hal-02938187, HAL.

    More about this item

    Keywords

    Public goods; Collective decision-making; Expulsion; Punishment; Voting behavior;

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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