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Group Size Effect and Over-Punishment in the Case of Third Party Enforcement of Social Norms

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  • Kenju Kamei

    (Durham University Business School)

Abstract

One of the important topics in public choice is how people’s free-riding behavior could differ by group size in collective action dilemmas. This paper experimentally studies how the strength of third party punishment in a prisoner’s dilemma could differ by the number of third parties in a group. Our data indicate that as the number of third party punishers increases in a group, the average punishment intensity per third party punisher decreases. However, the decrease rate is very mild and therefore the size of total punishment in a group substantially increases with an increase in group size. As a result, third party punishment becomes a sufficient deterrent against a player selecting defection in the prisoner’s dilemma when the number of third party punishers is sufficiently large. Nevertheless, when there are too many third party punishers in a group, a defector’s expected payoff is far lower than that of a cooperator due to strong aggregate punishment, while some cooperators are even hurt through punishment. Therefore, the group incurs a huge efficiency loss. Such over-punishment results from third party punishers’ conditional punishment behaviors: their punishment intensity is positively correlated with their beliefs on the peers’ punitive actions. Some possible ways to coordinate punishment among peers even when group size is very large, thus enabling the efficiency loss to be mitigated, are also discussed in the paper.

Suggested Citation

  • Kenju Kamei, 2018. "Group Size Effect and Over-Punishment in the Case of Third Party Enforcement of Social Norms," Working Papers 2018_04, Durham University Business School.
    • Handle: RePEc:dur:durham:2018_04
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    Cited by:

    1. Kamei, Kenju, 2020. "Voluntary disclosure of information and cooperation in simultaneous-move economic interactions," Journal of Economic Behavior & Organization, Elsevier, vol. 171(C), pages 234-246.
    2. Im, Changkuk & Lee, Jinkwon, 2022. "On the fragility of third-party punishment: The context effect of a dominated risky investment option," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 98(C).
    3. Morgan, Stephen N. & Mason, Nicole M. & Shupp, Robert S., 2019. "The effects of voice with(out) punishment: Public goods provision and rule compliance," Journal of Economic Psychology, Elsevier, vol. 74(C).
    4. 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.
    5. Kenju Kamei & Artem Nesterov, 2020. "Endogenous Monitoring through Gossiping in an Infinitely Repeated Prisoner’s Dilemma Game: Experimental Evidence," Working Papers 2020_02, Durham University Business School.
    6. DeAngelo, Gregory & Houser, Daniel & Romaniuc, Rustam, 2020. "Experimental public choice: An introduction to the special issue," Journal of Economic Behavior & Organization, Elsevier, vol. 175(C), pages 278-280.
    7. Wang, Yahua & Wang, Huan, 2022. "Effects of farmland use rights transfer on collective action in the commons: Evidence from rural China," Land Use Policy, Elsevier, vol. 120(C).
    8. KAMEI Kenju, 2022. "Self-regulatory Resources and Institutional Formation: A first experimental test," Discussion papers 22084, Research Institute of Economy, Trade and Industry (RIETI).
    9. Jan Philipp Krügel & Nicola Maaser, 2020. "Cooperation and Norm-Enforcement under Impartial vs. Competitive Sanctions," Economics Working Papers 2020-15, Department of Economics and Business Economics, Aarhus University.
    10. Kamei, Kenju, 2018. "The role of visibility on third party punishment actions for the enforcement of social norms," Economics Letters, Elsevier, vol. 171(C), pages 193-197.
    11. Nesterov, Artem, 2020. "Conditional Rewarding Behaviour: An Experiment," MPRA Paper 104944, University Library of Munich, Germany.
    12. Kenju Kamei & Smriti Sharma & Matthew J. Walker, 2023. "Sanction Enforcement among Third Parties:New Experimental Evidence from Two Societies," Keio-IES Discussion Paper Series 2023-010, Institute for Economics Studies, Keio University.
    13. Liu, Jia & Riyanto, Yohanes E. & Zhang, Ruike, 2020. "Firing the right bullets: Exploring the effectiveness of the hired-gun mechanism in the provision of public goods," Journal of Economic Behavior & Organization, Elsevier, vol. 170(C), pages 222-243.
    14. Kenju Kamei & Smriti Sharma & Matthew J. Walker, 2023. "Collective Sanction Enforcement: New Experimental Evidence from Two Societies," Keio-IES Discussion Paper Series 2023-014, Institute for Economics Studies, Keio University.
    15. Kenju Kamei, 2021. "Teams Do Inflict Costly Third-Party Punishment as Individuals Do: Experimental Evidence," Games, MDPI, vol. 12(1), pages 1-11, March.

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    More about this item

    Keywords

    experiment; cooperation; third party punishment; dilemma; group size effect;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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