The Dynamics of Neighbourhood Watch and Norm Enforcement
We analyze the dynamics of neighbourhood watch programs in a local interaction framework. Agents can watch their neighbours' houses and thus deter burglars from breaking in. At the same time, agents also try to recruit their neighbours to join the neighbourhood watch program. The probability of an agent joining the neighbourhood watch program depends on the success of the program, i.e., whether burglaries continue to occur. We show that the punishment of burglars plays a dual role in this context. On the one hand, punishment deters burglaries if the level of punishment is sufficiently high. On the other hand, it also affects the probability of an agent joining the neighbourhood watch program. In particular, we show that if recruitment is harder when burglaries do not occur, a legal policy attempting to improve deterrence using more severe punishment is suboptimal. In a second part, we extend our model to the study of norm enforcement in public goods dilemmas and show that our results remain valid if agents can punish each other (instead of burglars) for not contributing to the public good. Our paper thus provides a first analysis of the evolution of "altruistic punishment" in large populations with local interaction.
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- Ernst Fehr & Simon Gaechter, .
"Cooperation and Punishment in Public Goods Experiments,"
IEW - Working Papers
010, Institute for Empirical Research in Economics - University of Zurich.
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- 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.
- Jeffrey Carpenter, 2002. "Punishing Free Riders: how group size affects mutual monitoring and the provision of public goods," Middlebury College Working Paper Series 0206, Middlebury College, Department of Economics.
- Carpenter, Jeffrey P., 2004. "Punishing Free-Riders: How Group Size Affects Mutual Monitoring and the Provision of Public Goods," IZA Discussion Papers 1337, Institute for the Study of Labor (IZA).
- Offerman, T.J.S. & Potters, J.J.M. & Sonnemans, J., 2002.
"Imitation and belief learning in an oligopoly experiment,"
Other publications TiSEM
a6a771c5-31ba-4193-8f76-a, Tilburg University, School of Economics and Management.
- Offerman, Theo & Potters, Jan & Sonnemans, Joep, 2002. "Imitation and Belief Learning in an Oligopoly Experiment," Review of Economic Studies, Wiley Blackwell, vol. 69(4), pages 973-97, October.
- Theo Offerman & Jan Potters & Joep Sonnemans, 2002. "Imitation and Belief Learning in an Oligopoly Experiment," Review of Economic Studies, Oxford University Press, vol. 69(4), pages 973-997.
- Carpenter, Jeffrey P., 2007.
"The demand for punishment,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 62(4), pages 522-542, April.
- Michael Kosfeld, 2002. "Stochastic strategy adjustment in coordination games," Economic Theory, Springer, vol. 20(2), pages 321-339.
- Ernst Fehr & Simon Gaechter, 2003. "Altruistic Punishment in Humans," Microeconomics 0305006, EconWPA.
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