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Sanctions that Signal: an Experiment

  • Roberto Galbiatiy
  • Karl Schlagz
  • Joel van der Weele

The introduction of sanctions provides incentives for more pro-social behavior, but may also be a signal that non-cooperation is prevalent. In an experimental minimum-effort coordination game we investigate the effects of the information contained in the choice to sanction. We compare the effect of sanctions that are introduced exogenously by the experimenter to that of sanctions which have been actively chosen by a subject who has superior information about the previous effort of the other players. We find that cooperative subjects perceive actively chosen sanctions as a negative signal which significantly reduces the effect of sanctions.

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Paper provided by David K. Levine in its series Levine's Working Paper Archive with number 661465000000001104.

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Date of creation: 14 Dec 2010
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Handle: RePEc:cla:levarc:661465000000001104
Contact details of provider: Web page: http://www.dklevine.com/

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