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United we stand: On the benefits of coordinated punishment

Author

Listed:
  • Vicente Calabuig

    (ERICES, Universidad de Valencia)

  • Natalia Jimenez

    (Department of Economics, Universidad Pablo de Olavide & Middlesex University)

  • Gonzalo Olcina

    (ERICES, Universidad de Valencia)

  • Ismael Rodriguez-Lara

    (Departamento de Teoria e Historia Economica, University of Granada)

Abstract

Coordinated punishment requires a specific number of punishers to be effective (otherwise, no damage is inflicted on the target) but it also exhibits returns to scale. While societies often rely on this punishment device, its benefits are unclear compared with uncoordinated punishment, where punishment decisions are substitutes. We argue that coordinated punishment can prevent the free-riding of punishers and show, both theoretically and experimentally, that this may be beneficial for cooperation in a team investment game, compared with uncoordinated punishment. Nevertheless, efficiency is not enhanced since punishment is more extensively used when it is coordinated.

Suggested Citation

  • Vicente Calabuig & Natalia Jimenez & Gonzalo Olcina & Ismael Rodriguez-Lara, 2019. "United we stand: On the benefits of coordinated punishment," Working Papers 19.01, Universidad Pablo de Olavide, Department of Economics.
    • Handle: RePEc:pab:wpaper:19.01
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    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D69 - Microeconomics - - Welfare Economics - - - Other
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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