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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- Henrich, Joseph, 2004. "Cultural group selection, coevolutionary processes and large-scale cooperation," Journal of Economic Behavior & Organization, Elsevier, vol. 53(1), pages 3-35, January.
- Ernst Fehr & Urs Fischbacher, 2004.
"Third-party punishment and social norms,"
- Jeffrey Carpenter & Peter Hans Matthews, 2004.
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.
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