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Punishment, social norms, and cooperation

In: Research Handbook on Behavioral Law and Economics

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  • Erte Xiao

Abstract

How to design punishment mechanisms to maintain social order is a central question in law. Xiao reviews recent behavioral economic research on how punishment influences prosocial behavior, much of which provides evidence that punishment can have a negative effect on cooperation. She discusses several factors that can lead to the detrimental effect of punishment and suggests some solutions. She argues that the effectiveness of punishment is closely connected to its role in expressing social norms. She ends the chapter by reviewing some recent research on social norms and suggesting punishment and social norm instruments are complementary in promoting cooperation.

Suggested Citation

  • Erte Xiao, 2018. "Punishment, social norms, and cooperation," Chapters, in: Joshua C. Teitelbaum & Kathryn Zeiler (ed.), Research Handbook on Behavioral Law and Economics, chapter 6, pages 155-173, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:14176_6
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    Cited by:

    1. Bicchieri, Cristina & Dimant, Eugen & Xiao, Erte, 2021. "Deviant or wrong? The effects of norm information on the efficacy of punishment," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 209-235.

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    Economics and Finance; Law - Academic;

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