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Voluntary contributions with redistribution: The effect of costly sanctions when one person's punishment is another's reward

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  • Page, Talbot
  • Putterman, Louis
  • Garcia, Bruno

Abstract

We introduce new treatments of a voluntary contribution mechanism with opportunities to punish in order to see how contributions, punishments and earnings change when punishment is in the form of fines the punisher distributes to other members of her group. The linked punishment-reward set up is of theoretical interest and could represent simultaneous shifts of social disapproval and approval. Conjectures that punishment will be better targeted, and that it will be more substantial for given deviation from others’ contributions, receive support. Making punishment redistributive increases contributions and efficiency, even after netting out the design's free resource element.

Suggested Citation

  • Page, Talbot & Putterman, Louis & Garcia, Bruno, 2013. "Voluntary contributions with redistribution: The effect of costly sanctions when one person's punishment is another's reward," Journal of Economic Behavior & Organization, Elsevier, vol. 95(C), pages 34-48.
    • Handle: RePEc:eee:jeborg:v:95:y:2013:i:c:p:34-48
    DOI: 10.1016/j.jebo.2013.08.006
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    Cited by:

    1. 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.

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    More about this item

    Keywords

    Public goods; Collective action; Experiment; Punishment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D30 - Microeconomics - - Distribution - - - General

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