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Network architecture, cooperation and punishment in public good experiments

  • Jeffrey Carpenter

    ()

  • Shachar Kariv

    ()

  • Andrew Schotter

    ()

Following Fehr and Gäechter (Am Econ Rev 90(4):980–994, 2000 ), a large and growing number of experiments show that public goods can be provided at high levels when mutual monitoring and costly punishment are allowed. Nearly all experiments, however, study monitoring and punishment in a complete network where all subjects can monitor and punish each other. The architecture of social networks becomes important when subjects can only monitor and punish the other subjects to whom they are connected by the network. We study several incomplete networks and find that they give rise to their own distinctive patterns of behavior. Nevertheless, a number of simple, yet fundamental, properties in graph theory allow us to interpret the variation in the patterns of behavior that arise in the laboratory and to explain the impact of network architecture on the efficiency and dynamics of the experimental outcomes. Copyright Springer-Verlag 2012

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File URL: http://hdl.handle.net/10.1007/s10058-012-0120-z
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Article provided by Springer in its journal Review of Economic Design.

Volume (Year): 16 (2012)
Issue (Month): 2 (September)
Pages: 93-118

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Handle: RePEc:spr:reecde:v:16:y:2012:i:2:p:93-118
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  1. Carpenter, Jeffrey P., 2007. "Punishing free-riders: How group size affects mutual monitoring and the provision of public goods," Games and Economic Behavior, Elsevier, vol. 60(1), pages 31-51, July.
  2. David Masclet & Charles Noussair & Steven Tucker & Marie-Claire Villeval, 2003. "Monetary and Nonmonetary Punishment in the Voluntary Contributions Mechanism," American Economic Review, American Economic Association, vol. 93(1), pages 366-380, March.
  3. Jeffrey Carpenter & Peter Matthews, 2009. "What norms trigger punishment?," Experimental Economics, Springer, vol. 12(3), pages 272-288, September.
  4. Matthias Cinyabuguma & Talbot Page & Louis Putterman, 2004. "Cooperation Under the Threat of Expulsion in a Public Goods Experiment," Working Papers 2004-05, Brown University, Department of Economics.
  5. Simon Gachter & Ernst Fehr, 2000. "Cooperation and Punishment in Public Goods Experiments," American Economic Review, American Economic Association, vol. 90(4), pages 980-994, September.
  6. Kosfeld Michael, 2004. "Economic Networks in the Laboratory: A Survey," Review of Network Economics, De Gruyter, vol. 3(1), pages 1-23, March.
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