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Norm-Signalling Punishment

Author

Listed:
  • Daniele Nosenzo

    (Department of Economics and Business Economics, Aarhus University)

  • Erte Xiao

    (Monash University)

  • Nina Xue

    (Monash University)

Abstract

The literature on punishment and prosocial behavior has presented conflicting findings. In some settings, punishment crowds out prosocial behavior and backfires, in others, however, it promotes prosociality. We examine whether the punisher’s motives can help reconcile these results through a novel experiment in which the agent’s outcomes are identical in two environments, but in one punishment is self-serving (i.e., potentially benefits the punisher) while in the other it is other-regarding (i.e., potentially benefits a third party). We find that self-regarding punishment reduces the social stigma of selfish behavior, while other-regarding punishment does not. As a result, self-serving punishment is less effective at encouraging compliance and is more likely to backfire compared to other-regarding punishment. Our findings have implications for the design of punishment mechanisms and highlight the importance of the punisher’s motives in the norm-signalling function of punishment.

Suggested Citation

  • Daniele Nosenzo & Erte Xiao & Nina Xue, 2022. "Norm-Signalling Punishment," Economics Working Papers 2022-07, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2022-07
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Punishment; norms; stigma; crowd out; experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

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