IDEAS home Printed from https://ideas.repec.org/p/syd/wpaper/2123-8089.html
   My bibliography  Save this paper

New Insights into Conditional Cooperation and Punishment from a Strategy Method Experiment

Author

Listed:
  • Cheung, Stephen L.

Abstract

This paper introduces new experimental designs to examine how conditional cooperation and punishment behaviours respond to the full range of variation in the contributions of others. It is shown that contributions become significantly more selfish-biased as others contribute more unequally, while punishment increases both with decreasing contributions by the target player and increasing contributions by a third player. Low contributors who punish antisocially do not direct their punishment specifically toward high contributors, while their beliefs indicate that they expect to themselves be punished.

Suggested Citation

  • Cheung, Stephen L., 2012. "New Insights into Conditional Cooperation and Punishment from a Strategy Method Experiment," Working Papers 2012-01, University of Sydney, School of Economics.
  • Handle: RePEc:syd:wpaper:2123/8089
    as

    Download full text from publisher

    File URL: http://www.econ-wpseries.com/2012/201201.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jordi Brandts & Gary Charness, 2011. "The strategy versus the direct-response method: a first survey of experimental comparisons," Experimental Economics, Springer;Economic Science Association, vol. 14(3), pages 375-398, September.
    2. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 817-868.
    3. Armin Falk & Ernst Fehr & Urs Fischbacher, 2005. "Driving Forces Behind Informal Sanctions," Econometrica, Econometric Society, vol. 73(6), pages 2017-2030, November.
    4. Thöni, Christian & Tyran, Jean-Robert & Wengström, Erik, 2012. "Microfoundations of social capital," Journal of Public Economics, Elsevier, vol. 96(7-8), pages 635-643.
    5. Carpenter, Jeffrey P., 2007. "The demand for punishment," Journal of Economic Behavior & Organization, Elsevier, vol. 62(4), pages 522-542, April.
    6. Fischbacher, Urs & Gachter, Simon & Fehr, Ernst, 2001. "Are people conditionally cooperative? Evidence from a public goods experiment," Economics Letters, Elsevier, vol. 71(3), pages 397-404, June.
    7. Anderson, Christopher M. & Putterman, Louis, 2006. "Do non-strategic sanctions obey the law of demand? The demand for punishment in the voluntary contribution mechanism," Games and Economic Behavior, Elsevier, vol. 54(1), pages 1-24, January.
    8. Simon Gächter & Elke Renner, 2010. "The effects of (incentivized) belief elicitation in public goods experiments," Experimental Economics, Springer;Economic Science Association, vol. 13(3), pages 364-377, September.
    9. Christian Thöni, 2014. "Inequality aversion and antisocial punishment," Theory and Decision, Springer, vol. 76(4), pages 529-545, April.
    10. Matthias Cinyabuguma & Talbot Page & Louis Putterman, 2006. "Can second-order punishment deter perverse punishment?," Experimental Economics, Springer;Economic Science Association, vol. 9(3), pages 265-279, September.
    11. Jeremy Clark, 2002. "House Money Effects in Public Good Experiments," Experimental Economics, Springer;Economic Science Association, vol. 5(3), pages 223-231, December.
    12. Urs Fischbacher & Simon Gachter, 2010. "Social Preferences, Beliefs, and the Dynamics of Free Riding in Public Goods Experiments," American Economic Review, American Economic Association, vol. 100(1), pages 541-556, March.
    13. Kocher, Martin G. & Cherry, Todd & Kroll, Stephan & Netzer, Robert J. & Sutter, Matthias, 2008. "Conditional cooperation on three continents," Economics Letters, Elsevier, vol. 101(3), pages 175-178, December.
    14. Benedikt Herrmann & Christian Thöni, 2009. "Measuring conditional cooperation: a replication study in Russia," Experimental Economics, Springer;Economic Science Association, vol. 12(1), pages 87-92, March.
    15. Volk, Stefan & Thöni, Christian & Ruigrok, Winfried, 2012. "Temporal stability and psychological foundations of cooperation preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 664-676.
    16. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    17. Simon Gachter & Ernst Fehr, 2000. "Cooperation and Punishment in Public Goods Experiments," American Economic Review, American Economic Association, vol. 90(4), pages 980-994, September.
    18. Nikos Nikiforakis & Hans-Theo Normann, 2008. "A comparative statics analysis of punishment in public-good experiments," Experimental Economics, Springer;Economic Science Association, vol. 11(4), pages 358-369, December.
    19. Ananish Chaudhuri, 2011. "Sustaining cooperation in laboratory public goods experiments: a selective survey of the literature," Experimental Economics, Springer;Economic Science Association, vol. 14(1), pages 47-83, March.
    20. Ones, Umut & Putterman, Louis, 2007. "The ecology of collective action: A public goods and sanctions experiment with controlled group formation," Journal of Economic Behavior & Organization, Elsevier, vol. 62(4), pages 495-521, April.
    21. Greiner, Ben, 2004. "An Online Recruitment System for Economic Experiments," MPRA Paper 13513, University Library of Munich, Germany.
    22. Rey-Biel, Pedro, 2009. "Equilibrium play and best response to (stated) beliefs in normal form games," Games and Economic Behavior, Elsevier, vol. 65(2), pages 572-585, March.
    23. Gangadharan, Lata & Nikiforakis, Nikos, 2009. "Does the size of the action set matter for cooperation?," Economics Letters, Elsevier, vol. 104(3), pages 115-117, September.
    24. Weber, Roberto A., 2003. "'Learning' with no feedback in a competitive guessing game," Games and Economic Behavior, Elsevier, vol. 44(1), pages 134-144, July.
    25. Roberto Burlando & Francesco Guala, 2005. "Heterogeneous Agents in Public Goods Experiments," Experimental Economics, Springer;Economic Science Association, vol. 8(1), pages 35-54, April.
    26. Sugden, Robert, 1984. "Reciprocity: The Supply of Public Goods through Voluntary Contributions," Economic Journal, Royal Economic Society, vol. 94(376), pages 772-787, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christian Thöni, 2014. "Inequality aversion and antisocial punishment," Theory and Decision, Springer, vol. 76(4), pages 529-545, April.
    2. Hartig, Björn & Irlenbusch, Bernd & Kölle, Felix, 2015. "Conditioning on what? Heterogeneous contributions and conditional cooperation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 55(C), pages 48-64.
    3. Urs Fischbacher & Simeon Schudy & Sabrina Teyssier, 2014. "Heterogeneous reactions to heterogeneity in returns from public goods," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(1), pages 195-217, June.
    4. Lenka Fiala & Sigrid Suetens, 2017. "Transparency and cooperation in repeated dilemma games: a meta study," Experimental Economics, Springer;Economic Science Association, vol. 20(4), pages 755-771, December.
    5. Francesco Fallucchi & R. Andrew Luccasen & Theodore L. Turocy, 2017. "Behavioural types in public goods games: A re-analysis by hierarchical clutering," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 17-01, School of Economics, University of East Anglia, Norwich, UK..
    6. Aurélie Dariel, 2018. "Conditional Cooperation and Framing Effects," Games, MDPI, Open Access Journal, vol. 9(2), pages 1-12, June.
    7. Francesco Fallucchi & R. Andrew Luccasen & Theodore L. Turocy, 2017. "Behavioural types in public goods games: A re-analysis by hierarchical clutering," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 17-01R, School of Economics, University of East Anglia, Norwich, UK..
    8. Francesco Fallucchi & R. Andrew Luccasen & Theodore L. Turocy, 2019. "Identifying discrete behavioural types: a re-analysis of public goods game contributions by hierarchical clustering," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 5(2), pages 238-254, December.
    9. Kirchkamp, Oliver & Mill, Wladislaw, 2020. "Conditional cooperation and the effect of punishment," Journal of Economic Behavior & Organization, Elsevier, vol. 174(C), pages 150-172.
    10. Danielle Kent, 2020. "Comparing alternative estimation methods of a public goods game," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 6(2), pages 156-167, December.
    11. Vyrastekova, Jana & Funaki, Yukihiko, 2018. "Cooperation in a sequential dilemma game: How much transparency is good for cooperation?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 88-95.
    12. Felix Albrecht & Sebastian Kube, 2018. "Peer-Punishment in a Cooperation and a Coordination Game," Games, MDPI, Open Access Journal, vol. 9(3), pages 1-13, July.
    13. Petit Dit Dariel, A.C., 2013. "Cooperation preferences and framing effects," Research Memorandum 010, Maastricht University, Graduate School of Business and Economics (GSBE).
    14. Tingting Fu & Louis Putterman, 2018. "When is punishment harmful to cooperation? A note on antisocial and perverse punishment," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 4(2), pages 151-164, December.
    15. Irenaeus Wolff, 2016. "What are the equilibria in linear public-good experiments?," TWI Research Paper Series 105, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    16. Albrecht, Felix & Kube, Sebastian & Traxler, Christian, 2018. "Cooperation and norm enforcement - The individual-level perspective," Journal of Public Economics, Elsevier, vol. 165(C), pages 1-16.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fischbacher, Urs & Gächter, Simon & Quercia, Simone, 2012. "The behavioral validity of the strategy method in public good experiments," Journal of Economic Psychology, Elsevier, vol. 33(4), pages 897-913.
    2. Simon Gaechter, 2014. "Human Pro-Social Motivation and the Maintenance of Social Order," CESifo Working Paper Series 4729, CESifo.
    3. Simon Gaechter & Benedikt Herrmann, 2008. "Reciprocity, culture, and human cooperation: Previous insights and a new cross-cultural experiment," Discussion Papers 2008-14, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    4. Kenju Kamei & Louis Putterman & Jean-Robert Tyran, 2015. "State or nature? Endogenous formal versus informal sanctions in the voluntary provision of public goods," Experimental Economics, Springer;Economic Science Association, vol. 18(1), pages 38-65, March.
    5. Martin G. Kocher & Peter Martinsson & Kristian Ove R. Myrseth & Conny E. Wollbrant, 2017. "Strong, bold, and kind: self-control and cooperation in social dilemmas," Experimental Economics, Springer;Economic Science Association, vol. 20(1), pages 44-69, March.
    6. Peter Martinsson & Clara Villegas-Palacio & Conny Wollbrant, 2015. "Cooperation and social classes: evidence from Colombia," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(4), pages 829-848, December.
    7. Kocher, Martin G. & Martinsson, Peter & Matzat, Dominik & Wollbrant, Conny, 2015. "The role of beliefs, trust, and risk in contributions to a public good," Journal of Economic Psychology, Elsevier, vol. 51(C), pages 236-244.
    8. Urs Fischbacher & Simon Gaechter, 2008. "Heterogeneous Social Preferences And The Dynamics Of Free Riding In Public Good Experiments," Discussion Papers 2008-07, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    9. Urs Fischbacher & Simon Gachter, 2010. "Social Preferences, Beliefs, and the Dynamics of Free Riding in Public Goods Experiments," American Economic Review, American Economic Association, vol. 100(1), pages 541-556, March.
    10. Volk, Stefan & Thöni, Christian & Ruigrok, Winfried, 2012. "Temporal stability and psychological foundations of cooperation preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 664-676.
    11. Theodore Eisenberg & Christoph Engel, 2012. "Assuring Adequate Deterrence in Tort: A Public Good Experiment," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2012_07, Max Planck Institute for Research on Collective Goods.
    12. Weng, Qian & Carlsson, Fredrik, 2015. "Cooperation in teams: The role of identity, punishment, and endowment distribution," Journal of Public Economics, Elsevier, vol. 126(C), pages 25-38.
    13. Gächter, Simon & Renner, Elke, 2018. "Leaders as role models and ‘belief managers’ in social dilemmas," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 321-334.
    14. Danková, Katarína & Servátka, Maroš, 2015. "The house money effect and negative reciprocity," Journal of Economic Psychology, Elsevier, vol. 48(C), pages 60-71.
    15. Kölle, Felix & Gächter, Simon & Quercia, Simone, 2014. "The ABC of Cooperation in Voluntary Contribution and Common Pool Extraction Games," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100417, Verein für Socialpolitik / German Economic Association.
    16. Gächter, Simon & Renner, Elke, 2014. "Leaders as Role Models for the Voluntary Provision of Public Goods," IZA Discussion Papers 8580, Institute of Labor Economics (IZA).
    17. Akay, Alpaslan & Karabulut, Gökhan & Martinsson, Peter, 2011. "The Effect of Religion on Cooperation and Altruistic Punishment: Experimental Evidence from Public Goods Experiments," IZA Discussion Papers 6179, Institute of Labor Economics (IZA).
    18. Felix Albrecht & Sebastian Kube & Christian Traxler, 2016. "Cooperation and Punishment: The Individual-Level Perspective," CESifo Working Paper Series 6284, CESifo.
    19. Albrecht, Felix & Kube, Sebastian & Traxler, Christian, 2018. "Cooperation and norm enforcement - The individual-level perspective," Journal of Public Economics, Elsevier, vol. 165(C), pages 1-16.
    20. Ananish Chaudhuri, 2011. "Sustaining cooperation in laboratory public goods experiments: a selective survey of the literature," Experimental Economics, Springer;Economic Science Association, vol. 14(1), pages 47-83, March.

    More about this item

    Keywords

    strategy method; punishment; conditional cooperation; selfish bias;
    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
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:syd:wpaper:2123/8089. 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: (Vanessa Holcombe). General contact details of provider: https://edirc.repec.org/data/deusyau.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.