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The Signaling Value of Punishing Norm-Breakers and Rewarding Norm-Followers

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  • Fabrizio Adriani

    (Department of Economics, University of Leicester, University Road, Leicester LE1 7RH, UK)

  • Silvia Sonderegger

    (School of Economics, University of Nottingham, CEDEX, University Park, Nottingham NG7 2RD, UK)

Abstract

We formally explore the idea that punishment of norm-breakers may be a vehicle for the older generation to teach youngsters about social norms. We show that this signaling role provides sufficient incentives to sustain costly punishing behavior. People punish norm-breakers to pass information about past history to the younger generation. This creates a link between past, present, and future punishment. Information about the past is important for youngsters, because the past shapes the future. Reward-based mechanisms may also work and are welfare superior to punishment-based ones. However, reward-based mechanisms are fragile, since punishment is a more compelling signaling device (in a sense that we make precise).

Suggested Citation

  • Fabrizio Adriani & Silvia Sonderegger, 2018. "The Signaling Value of Punishing Norm-Breakers and Rewarding Norm-Followers," Games, MDPI, vol. 9(4), pages 1-32, December.
    • Handle: RePEc:gam:jgames:v:9:y:2018:i:4:p:102-:d:190380
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    Keywords

    norms; punishment; reaward; signaling;
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