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Endowment heterogeneity and peer punishment in a public good experiment: Cooperation and normative conflict

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  • Kingsley, David C.

Abstract

The provision of public goods motivates the creation of institutions designed to compel individuals to cooperate. Peer punishment mechanisms have garnered particular attention and suggest that groups are able to self-govern. Research suggests that the effectiveness of peer punishment depends on a group’s capacity to establish and enforce contribution norms. This paper investigates the effectiveness of such institutions when normative conflict makes contribution norms ambiguous. In an interior solution public good experiment, endowment heterogeneity and peer punishment are interacted. Results suggest that peer punishment induces greater contributions when endowments are homogeneous but does not increase contributions when endowments are heterogeneous. Across the payoff equivalent endowment conditions with the opportunity to punish, contributions and earnings are significantly lower when endowments are heterogeneous. This research suggests that the capacity of groups to self-govern is limited when normative conflict makes contribution norms ambiguous.

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  • Kingsley, David C., 2016. "Endowment heterogeneity and peer punishment in a public good experiment: Cooperation and normative conflict," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 60(C), pages 49-61.
    • Handle: RePEc:eee:soceco:v:60:y:2016:i:c:p:49-61
    DOI: 10.1016/j.socec.2015.12.002
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    4. Simon Columbus & Lars P. Feld & Matthias Kasper & Matthew D. Rablen, 2023. "Behavioural Responses to Unfair Institutions: Experimental Evidence on Rule Compliance, Norm Polarisation, and Trust," CESifo Working Paper Series 10591, CESifo.
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    6. Cox, Caleb A. & Stoddard, Brock, 2024. "Inequality and the allocation of collective goods," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 756-767.
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    9. Mimra, Wanda & Nemitz, Janina & Waibel, Christian, 2020. "Voluntary pooling of genetic risk: A health insurance experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 864-882.
    10. Koessler, Ann-Kathrin & Müller, Julia & Zitzelsberger, Sonja, 2023. "Asymmetric heterogeneities and the role of transfers in a public goods experiment," European Economic Review, Elsevier, vol. 159(C).
    11. Wanda Mimra & Janina Nemitz & Christian Waibel, 2019. "Voluntary pooling of genetic risk: A health insurance experiment," Post-Print hal-02499086, HAL.
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    13. Fellner-Röhling, Gerlinde & Kröger, Sabine & Seki, Erika, 2020. "Public good production in heterogeneous groups: An experimental analysis on the relation between external return and information," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 84(C).
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    More about this item

    Keywords

    Public good experiment; Cooperation; Normative conflict; Contribution norms; Heterogeneity; Self-governance;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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