IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

The Demand for Punishment

  • Jeffrey Carpenter


While many experiments demonstrate that the actual behavior is different than predicted behavior, they have not shown that economic reasoning is necessarily incorrect. Instead, these experiments illustrate that the problem with homo economicus is that his preferences have been mis-specified. Modeled with social preferences, agents who forgo material gains can often be called rational. The current experiment illustrates this point with an example. Assuming self-interested agents, punishment is not credible in social dilemmas, yet people are often willing to incur costs to punish free riders. Despite this seeming irrationality, we show that these same people react to changes in the price of punishing and income as if punishment was an ordinary and normal good.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Middlebury College, Department of Economics in its series Middlebury College Working Paper Series with number 0243.

in new window

Length: 32 pages
Date of creation: Sep 2002
Date of revision:
Handle: RePEc:mdl:mdlpap:0243
Contact details of provider:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
  2. Martin Sefton & Robert Shupp & James M. Walker, 2006. "The Effect of Rewards and Sanctions in Provision of Public Goods," Caepr Working Papers 2006-005, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington, revised Aug 2006.
  3. Carpenter, Jeffrey P., 2004. "When in Rome: conformity and the provision of public goods," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(4), pages 395-408, September.
  4. Colin F. Camerer & Richard H. Thaler, 1995. "Anomalies: Ultimatums, Dictators and Manners," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 209-219, Spring.
  5. Armin Falk & Ernst Fehr & Urs Fischbacher, . "Driving Forces of Informal Sanctions," IEW - Working Papers 059, Institute for Empirical Research in Economics - University of Zurich.
  6. Charness, Gary B & Rabin, Matthew, 2001. "Understanding Social Preferences With Simple Tests," University of California at Santa Barbara, Economics Working Paper Series qt0dc3k4m5, Department of Economics, UC Santa Barbara.
  7. Masclet, D. & Noussair, C. & Tucker, S. & Villeval, M.C., 2001. "Monetary and Non-monetary Punishment in the Voluntary Contributions Mechanism," Purdue University Economics Working Papers 1141, Purdue University, Department of Economics.
  8. Jeffrey Carpenter & Peter Hans Matthews, 2004. "Social Reciprocity," Middlebury College Working Paper Series 0229r, Middlebury College, Department of Economics.
  9. Ernst Fehr & Simon Gaechter, . "Cooperation and Punishment in Public Goods Experiments," IEW - Working Papers 010, Institute for Empirical Research in Economics - University of Zurich.
  10. Jeffrey Carpenter & Peter Matthews & Okomboli Ong'ong'a, 2003. "Why Punish: Social Reciprocity and the Enforcement of Prosocial Norms," Middlebury College Working Paper Series 0213r, Middlebury College, Department of Economics.
  11. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
  12. Urs Fischbacher & Simon Gaechter & Ernst Fehr, . "Are People Conditionally Cooperative? Evidence from a Public Goods Experiment," IEW - Working Papers 016, Institute for Empirical Research in Economics - University of Zurich.
  13. Rami Zwick & Xiao-Ping Chen, 1999. "What Price Fairness? A Bargaining Study," Experimental 9902002, EconWPA.
  14. Carpenter, Jeffrey P. & Matthews, Peter Hans, 2005. "Norm Enforcement: Anger, Indignation or Reciprocity?," IZA Discussion Papers 1583, Institute for the Study of Labor (IZA).
  15. Olivier Bochet & Talbot Page & Louis Putterman, 2005. "Communication and Punishment in Voluntary Contribution Experiments," Working Papers 2005-09, Brown University, Department of Economics.
  16. Tversky, Amos & Slovic, Paul & Kahneman, Daniel, 1990. "The Causes of Preference Reversal," American Economic Review, American Economic Association, vol. 80(1), pages 204-17, March.
  17. repec:tpr:qjecon:v:116:y:2001:i:1:p:293-312 is not listed on IDEAS
  18. Pillutla, Madan M. & Murnighan, J. Keith, 1996. "Unfairness, Anger, and Spite: Emotional Rejections of Ultimatum Offers," Organizational Behavior and Human Decision Processes, Elsevier, vol. 68(3), pages 208-224, December.
  19. repec:tpr:qjecon:v:108:y:1993:i:2:p:437-59 is not listed on IDEAS
  20. James Andreoni & John Miller, 2002. "Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism," Econometrica, Econometric Society, vol. 70(2), pages 737-753, March.
  21. Eckel, Catherine C. & Grossman, Philip J., 1996. "The relative price of fairness: gender differences in a punishment game," Journal of Economic Behavior & Organization, Elsevier, vol. 30(2), pages 143-158, August.
  22. Colin Camerer & Ernst Fehr, 2003. "Measuring social norms and preferences using experimental games: A guide for social scientists," Levine's Working Paper Archive 506439000000000501, David K. Levine.
  23. Andreoni,J. & Vesterlund,L., 1998. "Which is the fair sex? : Gender differences in altruism," Working papers 10, Wisconsin Madison - Social Systems.
  24. Andreoni, James, 1988. "Why free ride? : Strategies and learning in public goods experiments," Journal of Public Economics, Elsevier, vol. 37(3), pages 291-304, December.
  25. James Andreoni & Marco Castillo & Ragan Petrie, 2003. "What Do Bargainers' Preferences Look Like? Experiments with a Convex Ultimatum Game," American Economic Review, American Economic Association, vol. 93(3), pages 672-685, June.
  26. Georg Kirchsteiger & Ernst Fehr & Arno Riedl, 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation," ULB Institutional Repository 2013/5927, ULB -- Universite Libre de Bruxelles.
  27. Suleiman, Ramzi, 1996. "Expectations and fairness in a modified Ultimatum game," Journal of Economic Psychology, Elsevier, vol. 17(5), pages 531-554, November.
  28. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-21, May.
  29. R. Isaac & James Walker & Susan Thomas, 1984. "Divergent evidence on free riding: An experimental examination of possible explanations," Public Choice, Springer, vol. 43(2), pages 113-149, January.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:mdl:mdlpap:0243. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vijaya Wunnava)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.