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On the Credibility of Punishment in Repeated Social Dilemma Games

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  • Ralph-C Bayer

    (School of Economics, University of Adelaide)

Abstract

Various experimental studies have shown that the availability of a punishment option can increase the prevalence of cooperative behaviour in repeated social dilemmas. A punishment option should only matter if it is a credible threat. We investigate if the degree of credibility depends on standard strategic equilibrium considerations (i.e. SPNE or NE logic) or stems from a non-strategic motivation such as reciprocity. We find that for punishment to be credible non-strategic motivations are sufficient and that subgame perfection does not further improve credibility.

Suggested Citation

  • Ralph-C Bayer, 2014. "On the Credibility of Punishment in Repeated Social Dilemma Games," School of Economics and Public Policy Working Papers 2014-08, University of Adelaide, School of Economics and Public Policy.
    • Handle: RePEc:adl:wpaper:2014-08
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    File URL: https://media.adelaide.edu.au/economics/papers/doc/wp2014-08.pdf
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    References listed on IDEAS

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    Cited by:

    1. Patrick Aquino & Robert S. Gazzale & Sarah Jacobson, 2015. "When Do Punishment Institutions Work?," Department of Economics Working Papers 2015-15, Department of Economics, Williams College, revised Aug 2015.

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    More about this item

    Keywords

    Cooperation; Punishment; Credible Threats;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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