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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

    as
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    Cited by:

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    2. Lisa Bruttel & Werner Güth, 2013. "Tit for Others' Tat Repeated Prisoner's Dilemma Experiments with Third-Party Monitoring and Indirect Punishment," Working Paper Series of the Department of Economics, University of Konstanz 2013-22, Department of Economics, University of Konstanz.
    3. Geng, Yini & Lu, Yikang & Hong, Lijun & Shi, Lei, 2025. "Evolution of cooperation with asymmetric rewards," Applied Mathematics and Computation, Elsevier, vol. 487(C).
    4. repec:spo:wpmain:info:hdl:2441/1bq1k745nc834o1mcjvbqevsoq is not listed on IDEAS
    5. Henry, Emeric & Sonntag, Jan, 2019. "Measuring image concern," Journal of Economic Behavior & Organization, Elsevier, vol. 160(C), pages 19-39.
    6. Henry, Emeric & Sonntag, Jan, 2019. "Measuring image concern," Journal of Economic Behavior & Organization, Elsevier, vol. 160(C), pages 19-39.
    7. Kamei, Kenju, 2017. "Altruistic Norm Enforcement and Decision-Making Format in a Dilemma: Experimental Evidence," MPRA Paper 76641, University Library of Munich, Germany.
    8. 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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    Keywords

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    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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