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Different carrots and different sticks: do we reward and punish differently than we approve and disapprove?

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  • Andreas Leibbrandt
  • Raúl López-Pérez

Abstract

This paper reports lab data from four games in order to analyze and compare the motivations behind monetary punishment and reward and their non-monetary counterparts, disapproval and approval, an important question given that both types of punishment/rewards affect cooperation and norm compliance. The results in our games support the hypothesis that a motivation akin to reciprocity plays the key role for approval and disapproval whereas payoff comparisons play the key role for monetary rewards and punishment. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Andreas Leibbrandt & Raúl López-Pérez, 2014. "Different carrots and different sticks: do we reward and punish differently than we approve and disapprove?," Theory and Decision, Springer, vol. 76(1), pages 95-118, January.
    • Handle: RePEc:kap:theord:v:76:y:2014:i:1:p:95-118
    DOI: 10.1007/s11238-013-9356-5
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    More about this item

    Keywords

    Approval; Disapproval; Inequity aversion; Monetary/non-monetary punishment and reward; Reciprocity; Social norms; C70; D91; D63; D74; Z13;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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