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When punishers might be loved: fourth-party choices and third-party punishment in a delegation game

Author

Listed:
  • Yuzhen Li

    (Zhejiang University of Finance and Economics)

  • Jun Luo

    (Zhejiang University of Finance and Economics)

  • He Niu

    (Zhejiang University of Finance and Economics)

  • Hang Ye

    (Zhejiang University of Finance and Economics)

Abstract

Third-party punishment (TPP) has been shown to be an effective mechanism for maintaining human cooperation. However, it is puzzling how third-party punishment can be maintained, as punishers take on personal costs to punish defectors. Although there is evidence that punishers are preferred as partners because third-party punishment is regarded by bystanders as a costly signal of trustworthiness, other studies show that this signaling value of punishment can be severely attenuated because third-party helping is viewed as a stronger signal of trustworthiness than third-party punishment. Third-party helpers donate their payoffs to victims of defection in games instead of punishing defectors as third-party punishers do. Then, under what circumstances can third-party punishment be maintained by costly signaling when helping is also present? We show that punishers are preferred over helpers by fourth-party individuals as their delegates to deter potential exploitation. This suggests that costly signaling can facilitate the maintenance of third-party punishment in partner choice with delegation interactions.

Suggested Citation

  • Yuzhen Li & Jun Luo & He Niu & Hang Ye, 2023. "When punishers might be loved: fourth-party choices and third-party punishment in a delegation game," Theory and Decision, Springer, vol. 94(3), pages 423-465, April.
    • Handle: RePEc:kap:theord:v:94:y:2023:i:3:d:10.1007_s11238-022-09897-6
    DOI: 10.1007/s11238-022-09897-6
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