IDEAS home Printed from https://ideas.repec.org/p/uea/wcbess/13-09.html
   My bibliography  Save this paper

Incomplete Punishment Networks in Public Goods Games: Experimental Evidence

Author

Listed:
  • Andreas Leibbrandt

    (Monash University)

  • Abhijit Ramalingam

    (University of East Anglia)

  • Lauri Saaksvuori

    (Hamburg University)

  • James M. Walker

    (Indiana University)

Abstract

Abundant evidence suggests that high levels of contributions to public goods can be sustained through self-governed monitoring and sanctions. This experimental study investigates the effectiveness of decentralized sanctioning institutions in alternative punishment networks. Our results show that the structure of punishment network significantly affects allocations to the public good. In addition, we observe that network configurations are more important than punishment capacities for the levels of public good provision, imposed sanctions and economic efficiency. We show that targeted revenge is a major driver of anti-social punishment.

Suggested Citation

  • Andreas Leibbrandt & Abhijit Ramalingam & Lauri Saaksvuori & James M. Walker, 2013. "Incomplete Punishment Networks in Public Goods Games: Experimental Evidence," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 13-09, School of Economics, University of East Anglia, Norwich, UK..
  • Handle: RePEc:uea:wcbess:13-09
    as

    Download full text from publisher

    File URL: https://archive.uea.ac.uk/menu/depts/eco/research/RePEc/uea/papers_pdf/UEA-CBESS-1309.pdf
    File Function: main text
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Guth, Werner & Levati, M. Vittoria & Sutter, Matthias & van der Heijden, Eline, 2007. "Leading by example with and without exclusion power in voluntary contribution experiments," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 1023-1042, June.
    2. Charness, Gary & Corominas-Bosch, Margarida & Frechette, Guillaume R., 2007. "Bargaining and network structure: An experiment," Journal of Economic Theory, Elsevier, vol. 136(1), pages 28-65, September.
    3. 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.
    4. David Masclet & Charles Noussair & Steven Tucker & Marie-Claire Villeval, 2003. "Monetary and Nonmonetary Punishment in the Voluntary Contributions Mechanism," American Economic Review, American Economic Association, vol. 93(1), pages 366-380, March.
    5. Jeffrey Carpenter & Shachar Kariv & Andrew Schotter, 2012. "Network architecture, cooperation and punishment in public good experiments," Review of Economic Design, Springer;Society for Economic Design, vol. 16(2), pages 93-118, September.
    6. Carpenter, Jeffrey P., 2007. "Punishing free-riders: How group size affects mutual monitoring and the provision of public goods," Games and Economic Behavior, Elsevier, vol. 60(1), pages 31-51, July.
    7. Charness, Gary & Jackson, Matthew O., 2007. "Group play in games and the role of consent in network formation," Journal of Economic Theory, Elsevier, vol. 136(1), pages 417-445, September.
    8. Kosfeld Michael, 2004. "Economic Networks in the Laboratory: A Survey," Review of Network Economics, De Gruyter, vol. 3(1), pages 1-23, March.
    9. 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.
    10. Andreoni, James, 1995. "Cooperation in Public-Goods Experiments: Kindness or Confusion?," American Economic Review, American Economic Association, vol. 85(4), pages 891-904, September.
    11. Keser, Claudia & Ehrhart, Karl-Martin & Berninghaus, Siegfried K., 1998. "Coordination and local interaction: experimental evidence," Economics Letters, Elsevier, vol. 58(3), pages 269-275, March.
    12. Bochet, Olivier & Page, Talbot & Putterman, Louis, 2006. "Communication and punishment in voluntary contribution experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 60(1), pages 11-26, May.
    13. Enrique Fatas & Miguel Meléndez-Jiménez & Hector Solaz, 2010. "An experimental analysis of team production in networks," Experimental Economics, Springer;Economic Science Association, vol. 13(4), pages 399-411, December.
    14. Nikos Nikiforakis & Hans-Theo Normann & Brian Wallace, 2010. "Asymmetric Enforcement of Cooperation in a Social Dilemma," Southern Economic Journal, Southern Economic Association, vol. 76(3), pages 638-659, January.
    15. James Andreoni & William Harbaugh & Lise Vesterlund, 2003. "The Carrot or the Stick: Rewards, Punishments, and Cooperation," American Economic Review, American Economic Association, vol. 93(3), pages 893-902, June.
    16. Andreas Leibbrandt & Raúl López-Pérez, 2014. "Different carrots and different sticks: do we reward and punish differently than we approve and disapprove?," Theory and Decision, Springer, vol. 76(1), pages 95-118, January.
    17. Rosenkranz, Stephanie & Weitzel, Utz, 2012. "Network structure and strategic investments: An experimental analysis," Games and Economic Behavior, Elsevier, vol. 75(2), pages 898-920.
    18. Cinyabuguma, Matthias & Page, Talbot & Putterman, Louis, 2005. "Cooperation under the threat of expulsion in a public goods experiment," Journal of Public Economics, Elsevier, vol. 89(8), pages 1421-1435, August.
    19. Laurent Denant-Boemont & David Masclet & Charles Noussair, 2007. "Punishment, counterpunishment and sanction enforcement in a social dilemma experiment," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 33(1), pages 145-167, October.
    20. Michael Kosfeld & Akira Okada & Arno Riedl, 2009. "Institution Formation in Public Goods Games," American Economic Review, American Economic Association, vol. 99(4), pages 1335-1355, September.
    21. Ertan, Arhan & Page, Talbot & Putterman, Louis, 2009. "Who to punish? Individual decisions and majority rule in mitigating the free rider problem," European Economic Review, Elsevier, vol. 53(5), pages 495-511, July.
    22. Carpenter, Jeffrey P., 2007. "The demand for punishment," Journal of Economic Behavior & Organization, Elsevier, vol. 62(4), pages 522-542, April.
    23. Martin Sefton & Robert Shupp & James M. Walker, 2007. "The Effect Of Rewards And Sanctions In Provision Of Public Goods," Economic Inquiry, Western Economic Association International, vol. 45(4), pages 671-690, October.
    24. James C. Cox & Elinor Ostrom & Vjollca Sadiraj & James M. Walker, 2013. "Provision versus Appropriation in Symmetric and Asymmetric Social Dilemmas," Southern Economic Journal, Southern Economic Association, vol. 79(3), pages 496-512, January.
    25. 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.
    26. Andreas Nicklisch & Irenaeus Wolff, 2011. "Cooperation Norms in Multiple‐Stage Punishment," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(5), pages 791-827, October.
    27. repec:cup:apsrev:v:86:y:1992:i:02:p:404-417_08 is not listed on IDEAS
    28. Isaac, R Mark & Walker, James M, 1988. "Communication and Free-Riding Behavior: The Voluntary Contribution Mechanism," Economic Inquiry, Western Economic Association International, vol. 26(4), pages 585-608, October.
    29. Nikiforakis, Nikos & Engelmann, Dirk, 2011. "Altruistic punishment and the threat of feuds," Journal of Economic Behavior & Organization, Elsevier, vol. 78(3), pages 319-332, May.
    30. Nikiforakis, Nikos, 2008. "Punishment and counter-punishment in public good games: Can we really govern ourselves," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 91-112, February.
    31. James M. Walker & Matthew A. Halloran, 2004. "Rewards and Sanctions and the Provision of Public Goods in One-Shot Settings," Experimental Economics, Springer;Economic Science Association, vol. 7(3), pages 235-247, October.
    32. Bramoulle, Yann & Kranton, Rachel, 2007. "Public goods in networks," Journal of Economic Theory, Elsevier, vol. 135(1), pages 478-494, July.
    33. 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.
    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. repec:eee:soceco:v:69:y:2017:i:c:p:108-116 is not listed on IDEAS
    2. Nicklisch, Andreas & Grechenig, Kristoffel & Thöni, Christian, 2016. "Information-sensitive Leviathans," Journal of Public Economics, Elsevier, vol. 144(C), pages 1-13.
    3. Offerman, Theo & Schram, Arthur & Van Leeuwen, Boris, 2014. "Competition for status creates superstars: An experiment on public good provision and network formation," IAST Working Papers 14-16, Institute for Advanced Study in Toulouse (IAST).
    4. repec:eee:phsmap:v:486:y:2017:i:c:p:827-838 is not listed on IDEAS
    5. Enrique Fatas & Miguel Meléndez-Jiménez & Antonio Morales & Hector Solaz, 2015. "Public goods and decay in networks," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 6(1), pages 73-90, March.
    6. Boosey, Luke & Mark Isaac, R., 2016. "Asymmetric network monitoring and punishment in public goods experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 26-41.
    7. Luke Boosey & R. Mark Isaac, 2014. "Network Monitoring and Punishment in Public Goods Experiments," Working Papers wp2014_12_01, Department of Economics, Florida State University.
    8. Ramalingam, Abhijit & Rojo Arjona, David & Schram, Arthur & Van Leeuwen, Boris, 2015. "Authority and Centrality: Power and Cooperation in Social Dilemma Networks," IAST Working Papers 15-23, Institute for Advanced Study in Toulouse (IAST).
    9. Ganga Shreedhar, Alessandro Tavoni, Carmen Marchiori, 2018. "Monitoring and punishment networks in a common-pool resource dilemma: experimental evidence," GRI Working Papers 292, Grantham Research Institute on Climate Change and the Environment.
    10. Ramalingam, Abhijit & Godoy, Sara & Morales, Antonio J. & Walker, James M., 2016. "An individualistic approach to institution formation in public good games," Journal of Economic Behavior & Organization, Elsevier, vol. 129(C), pages 18-36.

    More about this item

    Keywords

    public goods experiment; punishment; cooperation; networks;

    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
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

    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:uea:wcbess:13-09. 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: (Theodore Turocy). General contact details of provider: http://edirc.repec.org/data/esueauk.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.