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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- 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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IEW - Working Papers
106, Institute for Empirical Research in Economics - University of Zurich.
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