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Sustaining cooperation in social dilemmas: Comparison of centralized punishment institutions

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  • Kamijo, Y.
  • Nihonsugi, T.
  • Takeuchi, A.
  • Funaki, Y.

Abstract

This study investigates two centralized punishment institutions for a linear public goods game. These institutions require a certain contribution level and sanction under-contributing players. The two differ in who, among those who do not meet this requirement, receive sanctions. In one institution, all violators are sanctioned, and in the other, only the worst violator(s) is sanctioned. Theoretically, the public goods game of the latter institution yields contributions equal to or greater than that of the former institution with the same requirement and sanction level. The results of an experiment support this theoretical prediction. However, there is a discrepancy between the theory and laboratory observations in that the institution with the theoretically optimal requirement did not yield the highest profit.

Suggested Citation

  • Kamijo, Y. & Nihonsugi, T. & Takeuchi, A. & Funaki, Y., 2014. "Sustaining cooperation in social dilemmas: Comparison of centralized punishment institutions," Games and Economic Behavior, Elsevier, vol. 84(C), pages 180-195.
    • Handle: RePEc:eee:gamebe:v:84:y:2014:i:c:p:180-195
    DOI: 10.1016/j.geb.2014.01.002
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    Cited by:

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    2. Auerbach, Jan U. & Fonseca, Miguel A., 2020. "Preordered service in contract enforcement," Games and Economic Behavior, Elsevier, vol. 122(C), pages 130-149.
    3. Kingsley, David C. & Brown, Thomas C., 2016. "Endogenous and costly institutional deterrence in a public good experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 62(C), pages 33-41.
    4. Jan Philipp Krügel & Nicola Maaser, 2020. "Cooperation and Norm-Enforcement under Impartial vs. Competitive Sanctions," Economics Working Papers 2020-15, Department of Economics and Business Economics, Aarhus University.
    5. Kamijo, Yoshio, 2016. "Rewards versus punishments in additive, weakest-link, and best-shot contests," Journal of Economic Behavior & Organization, Elsevier, vol. 122(C), pages 17-30.
    6. Liu, Jia & Riyanto, Yohanes E. & Zhang, Ruike, 2020. "Firing the right bullets: Exploring the effectiveness of the hired-gun mechanism in the provision of public goods," Journal of Economic Behavior & Organization, Elsevier, vol. 170(C), pages 222-243.
    7. Liu, Jia & Riyanto, Yohanes Eko & Zhang, Ruike, 2017. "How Large Should the “Bullets” be? Dissecting the Role of Unilateral and Tie Punishment in the Provision of Public Goods," MPRA Paper 80388, University Library of Munich, Germany.
    8. Kirchkamp, Oliver & Mill, Wladislaw, 2020. "Conditional cooperation and the effect of punishment," Journal of Economic Behavior & Organization, Elsevier, vol. 174(C), pages 150-172.
    9. Yoshio Kamijo, 2014. "A theory of strategic auditing: How should we select one member from a homogeneous group?," Working Papers SDES-2014-1, Kochi University of Technology, School of Economics and Management, revised Oct 2014.
    10. Zhang, Boyu & An, Xinmiao & Dong, Yali, 2021. "Conditional cooperator enhances institutional punishment in public goods game," Applied Mathematics and Computation, Elsevier, vol. 390(C).
    11. Hiroki Ozono & Yoshio Kamijo & Kazumi Shimizu, 2017. "Does the order of punishment matter? A comparison of pool punishment systems," Working Papers 1707, Waseda University, Faculty of Political Science and Economics.
    12. Alventosa, Adriana & Antonioni, Alberto & Hernández, Penélope, 2021. "Pool punishment in public goods games: How do sanctioners’ incentives affect us?," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 513-537.
    13. Glöckner, Andreas & Kube, Sebastian & Nicklisch, Andreas, 2018. "The joint benefits of observed and unobserved social sanctions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 75(C), pages 105-116.
    14. De Geest, Lawrence R. & Kingsley, David C., 2019. "Endowment heterogeneity, incomplete information & institutional choice in public good experiments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 83(C).

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    More about this item

    Keywords

    Linear public goods game; Sanction; Punishment institutions; Laboratory experiment;
    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
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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