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Can second-order punishment deter perverse punishment?

Author

Listed:
  • Matthias Cinyabuguma
  • Talbot Page
  • Louis Putterman

Abstract

Recent experiments have shown that voluntary punishment of free riders can increase contributions, mitigating the free-rider problem. But frequently punishers punish high contributors, creating “perverse” incentives which can undermine the benefits of voluntary punishment. In our experiment, allowing punishment of punishing behaviors reduces punishment of high contributors, but gives rise to efficiency-reducing second-order “perverse” punishment. On balance, efficiency and contributions are slightly but not significantly enhanced. Copyright Economic Science Association 2006

Suggested Citation

  • 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.
  • Handle: RePEc:kap:expeco:v:9:y:2006:i:3:p:265-279
    DOI: 10.1007/s10683-006-9127-z
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    References listed on IDEAS

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