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Inequality, social sanctions and cooperation within South African fishing communities

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  • Visser, M.
  • Burns, J.

Abstract

We explore the effect of income inequality and social attitudes on cooperation and sanctioning in nine South African fishing communities, where allocation of fishing rights via quota and permits have been unequal and controversial. We use a linear public goods experiment design with heterogeneous endowments and peer sanctioning. In the Punishment treatment, aggregate contributions towards the public good are significantly higher amongst unequal groups, with low endowment players contributing the greatest endowment share. Sanctioning is significantly lower in unequal groups but demand for punishment is similar, irrespective of differences in relative costs. Free-riding drives punishment, but retaliation is another important motivator (specifically in unequal groups). In equal groups, antisocial punishment of cooperators is more common. The effect of real wealth and inequality on contributions and punishment is less salient, possibly due to real wealth not being discernible in the experimental context. Interestingly, social attitudes are important in explaining sanctioning behavior, indicating that distrust in formal institutions, and specifically in the top-down quota allocation process, may have a significant impact on behavioral outcomes and the effectiveness of community sanctioning mechanisms.

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  • Visser, M. & Burns, J., 2015. "Inequality, social sanctions and cooperation within South African fishing communities," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 95-109.
    • Handle: RePEc:eee:jeborg:v:118:y:2015:i:c:p:95-109
    DOI: 10.1016/j.jebo.2015.03.009
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    4. Carmen Pedroza-Gutiérrez & Jorge A López-Rocha, 2021. "Ungovernable systems: The strength of informal institutions in the sea cucumber fishery in Yucatan, Mexico," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-22, March.
    5. Sabrina Eisenbarth & Louis Graham & Anouk S. Rigterink, 2021. "Can Reminders of Rules Induce Compliance? Experimental Evidence from a Common Pool Resource Setting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(4), pages 653-681, August.
    6. Martinangeli, Andrea F.M. & Martinsson, Peter, 2020. "We, the rich: Inequality, identity and cooperation," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 249-266.
    7. Berazneva, Julia & Maertens, Annemie & Mhango, Wezi & Michelson, Hope, 2023. "Paying for agricultural information in Malawi: The role of soil heterogeneity," Journal of Development Economics, Elsevier, vol. 165(C).
    8. Nourani, Vesall & Maertens, Annemie & Michelson, Hope, 2021. "Public good provision and democracy: Evidence from an experiment with farmer groups in Malawi," World Development, Elsevier, vol. 145(C).

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    More about this item

    Keywords

    Inequality; Cooperation; Punishment; Public; Goods; Experiments;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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