Can second-order punishment deter perverse punishment?
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
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Volume (Year): 9 (2006)
Issue (Month): 3 (September)
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- Ernst Fehr & Urs Fischbacher, "undated".
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- Jeffrey Carpenter & Peter Matthews, 2002. "Social Reciprocity," Middlebury College Working Paper Series 0229, Middlebury College, Department of Economics.
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- Jeffrey Carpenter & Peter Hans Matthews, 2004. "Social Reciprocity," Middlebury College Working Paper Series 0229r, Middlebury College, Department of Economics.
- Tatsuyoshi Saijo & Hideki Nakamura, 2001. "The 'Spite' Dilemma in Voluntary Contribution Mechanism Experiments," Levine's Working Paper Archive 563824000000000155, David K. Levine. Full references (including those not matched with items on IDEAS)
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