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Motivations behind Peer-to-Peer (Counter-)Punishment in Public Goods Games: An Experiment

Author

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  • Kenju Kamei

    (Faculty of Economics, Keio University)

  • Katy Tabero

    (Department of Economics, University of Southampton)

Abstract

It is well-known that efficiency often fails to improve in public goods games with peer-to-peer punishment when counter-punishment is possible. This paper experimentally demonstrates, for the first time, that the effects of sanctioning institutions are modest, regardless of the decision-making format (individual or team). In the “team†conditions, subjects are randomly assigned to teams of three, and make joint decisions through communication. Their dialogue provides valuable insights into the motivations behind (counter-)punishment, as well as the resulting behavioral effects. A coding exercise reveals that first-order punishments (and counter-punishments) are primarily emotional responses to peers’ low contributions (and first order punishments, respectively).

Suggested Citation

  • Kenju Kamei & Katy Tabero, 2025. "Motivations behind Peer-to-Peer (Counter-)Punishment in Public Goods Games: An Experiment," Keio-IES Discussion Paper Series DP2025-019, Institute for Economics Studies, Keio University.
    • Handle: RePEc:keo:dpaper:dp2025-019
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    References listed on IDEAS

    as
    1. Cox, Caleb A. & Stoddard, Brock, 2018. "Strategic thinking in public goods games with teams," Journal of Public Economics, Elsevier, vol. 161(C), pages 31-43.
    2. Kenju Kamei, 2019. "The power of joint decision-making in a finitely-repeated dilemma," Oxford Economic Papers, Oxford University Press, vol. 71(3), pages 600-622.
    3. Kamei, Kenju & Putterman, Louis, 2015. "In broad daylight: Fuller information and higher-order punishment opportunities can promote cooperation," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 145-159.
    4. Gary Charness & Matthias Sutter, 2012. "Groups Make Better Self-Interested Decisions," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 157-176, Summer.
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    Keywords

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    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • H49 - Public Economics - - Publicly Provided Goods - - - Other

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