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Social norms, third-party observation and third-party reward

Author

Listed:
  • Matthias Sutter
  • Peter Lindner
  • Daniela Platsch

Abstract

This paper examines the influence of third-party observation and third-party reward on behavior in an experimental prisoner's dilemma (PD) game. Whereas the existing literature on third-party intervention as a means to sustain social norms has dealt almost exclusively with third-party punishment, we show that both third-party observation and third-party reward have positive effects on cooperation rates, compared to a treatment where no third party is involved. Third-party reward is more effective in increasing cooperation than third-party observation. However, rewards are given too late to prevent a steady downward trend of cooperation rates.

Suggested Citation

  • Matthias Sutter & Peter Lindner & Daniela Platsch, 2009. "Social norms, third-party observation and third-party reward," Working Papers 2009-08, Faculty of Economics and Statistics, Universität Innsbruck.
    • Handle: RePEc:inn:wpaper:2009-08
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Lisa Bruttel & Werner Güth, 2013. "Tit for Others' Tat Repeated Prisoner's Dilemma Experiments with Third-Party Monitoring and Indirect Punishment," Jena Economics Research Papers 2013-043, Friedrich-Schiller-University Jena.
    2. Henry, Emeric & Sonntag, Jan, 2019. "Measuring image concern," Journal of Economic Behavior & Organization, Elsevier, vol. 160(C), pages 19-39.
    3. repec:hal:spmain:info:hdl:2441/1bq1k745nc834o1mcjvbqevsoq is not listed on IDEAS
    4. Fiedler, Marina & Haruvy, Ernan, 2017. "The effect of third party intervention in the trust game," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 67(C), pages 65-74.
    5. Henry, Emeric & Sonntag, Jan, 2019. "Measuring image concern," Journal of Economic Behavior & Organization, Elsevier, vol. 160(C), pages 19-39.
    6. Kamei, Kenju, 2017. "Altruistic Norm Enforcement and Decision-Making Format in a Dilemma: Experimental Evidence," MPRA Paper 76641, University Library of Munich, Germany.
    7. Belot, Michèle & Bhaskar, V. & van de Ven, Jeroen, 2010. "Promises and cooperation: Evidence from a TV game show," Journal of Economic Behavior & Organization, Elsevier, vol. 73(3), pages 396-405, March.

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    More about this item

    Keywords

    Social norms; third-party reward; third-party observation; prisoner's dilemma experiment;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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