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Matching Technology and the Choice of Punishment Institutions in a Prisoner's Dilemma Game

Author

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  • Veronika Grimm

    (Lehrstuhl für Volkswirtschaftslehre - FAU - Friedrich-Alexander Universität Erlangen-Nürnberg = University of Erlangen-Nuremberg)

  • Friederike Mengel

    (Department of Economics (AE1) - Maastricht University [Maastricht])

Abstract

We experimentally investigate the effect of endogenous matching within a segmented population on peoples' willingness to cooperate as well as their attitudes towards cooperative norms. In the experiment participants can repeatedly choose between two groups, where in one of them a (local) punishment institution fosters cooperation. The degree of population viscosity (i.e. the extent to which matching is biased towards within-group interactions) is varied across treatments. We find that both, the share of participants that choose into the group with the punishment institution and the share of participants that cooperate, increase monotonically with the degree of population viscosity. Furthermore - with higher population viscosity - significantly more subjects claim to support a punishment institution in a post-experimental questionnaire.

Suggested Citation

  • Veronika Grimm & Friederike Mengel, 2011. "Matching Technology and the Choice of Punishment Institutions in a Prisoner's Dilemma Game," Post-Print hal-00989519, HAL.
    • Handle: RePEc:hal:journl:hal-00989519
    DOI: 10.1016/j.jebo.2011.01.018
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    Cited by:

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    3. Gallier, Carlo, 2020. "Democracy and compliance in public goods games," European Economic Review, Elsevier, vol. 121(C).
    4. Astrid Dannenberg & Carlo Gallier, 2019. "The Choice of Institutions to Solve Cooperation Problems: A Survey of Experimental Research," MAGKS Papers on Economics 201911, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

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    More about this item

    Keywords

    C92; Population Viscosity; C70; C73; Z13; C92.; Experiments; Cooperation; Punishment Institutions; Evolution; Population Viscosity.;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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