IDEAS home Printed from https://ideas.repec.org/p/hal/pseptp/halshs-01971468.html
   My bibliography  Save this paper

Dynamic effects of enforcement on cooperation

Author

Listed:
  • Roberto Galbiati

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)

  • Emeric Henry

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)

  • Nicolas Jacquemet

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

In situations where social payoffs are not aligned with private incentives, enforcement with fines can be a way to sustain cooperation. In this paper we show, by the means of a lab experiment , that past fines can have an effect on current behavior even when no longer in force. We document two mechanisms: a) past fines affect directly individuals' future propensity to cooperate; b) when fines for non cooperation are in place in the past, individuals experience higher levels of cooperation from partners and, consistent with indirect reciprocity motives, are in turn nicer towards others once these fines have been removed. This second mechanism is empirically prevalent and, in contrast with the first, induces a snowball effect of past enforcement. Our results can inform the design of costly enforcement policies.

Suggested Citation

  • Roberto Galbiati & Emeric Henry & Nicolas Jacquemet, 2018. "Dynamic effects of enforcement on cooperation," PSE-Ecole d'économie de Paris (Postprint) halshs-01971468, HAL.
    • Handle: RePEc:hal:pseptp:halshs-01971468
    DOI: 10.1073/pnas.1813502115
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01971468v1
    as

    Download full text from publisher

    File URL: https://shs.hal.science/halshs-01971468v1/document
    Download Restriction: no
    File URL: https://libkey.io/10.1073/pnas.1813502115?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2016. "Long-Term Persistence," Journal of the European Economic Association, European Economic Association, vol. 14(6), pages 1401-1436, December.
    2. Raymond Fisman & Edward Miguel, 2007. "Corruption, Norms, and Legal Enforcement: Evidence from Diplomatic Parking Tickets," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 1020-1048, December.
    3. Paul E. Turner & Lin Chao, 1999. "Prisoner's dilemma in an RNA virus," Nature, Nature, vol. 398(6726), pages 441-443, April.
    4. Sara Lowes & Nathan Nunn & James A. Robinson & Jonathan L. Weigel, 2017. "The Evolution of Culture and Institutions: Evidence From the Kuba Kingdom," Econometrica, Econometric Society, vol. 85, pages 1065-1091, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:hal:spmain:info:hdl:2441/6unm655ita9ojbuuc83c9h0is8 is not listed on IDEAS
    2. Roberto Galbiati & Emeric Henry & Nicolas Jacquemet & Max Lobeck, 2021. "How laws affect the perception of norms: Empirical evidence from the lockdown," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-14, September.
    3. Roberto Galbiati & Emeric Henry & Nicolas Jacquemet, 2019. "Learning to cooperate in the shadow of the law," Working Papers hal-03393094, HAL.
    4. repec:hal:wpspec:info:hdl:2441/6unm655ita9ojbuuc83c9h0is8 is not listed on IDEAS
    5. Roberto Galbiati & Emeric Henry & Nicolas Jacquemet, 2019. "Learning to cooperate in the shadow of the law," SciencePo Working papers halshs-02145486, HAL.
    6. Luigi Mittone & Matteo Ploner & Eugenio Verrina, 2021. "When the state does not play dice: aggressive audit strategies foster tax compliance," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 57(3), pages 591-615, October.
    7. Fabio Galeotti & Valeria Maggian & Marie Claire Villeval, 2021. "Fraud Deterrence Institutions Reduce Intrinsic Honesty," The Economic Journal, Royal Economic Society, vol. 131(638), pages 2508-2528.
    8. Tom Lane & Daniele Nosenzo & Silvia Sonderegger, 2023. "Law and Norms: Empirical Evidence," American Economic Review, American Economic Association, vol. 113(5), pages 1255-1293, May.
    9. repec:spo:wpecon:info:hdl:2441/6unm655ita9ojbuuc83c9h0is8 is not listed on IDEAS
    10. Philipp Chapkovski & Luca Corazzini & Valeria Maggian, 2021. "Does Whistleblowing on Tax Evaders Reduce Ingroup Cooperation?," Working Papers 2021:20, Department of Economics, University of Venice "Ca' Foscari".
    11. repec:spo:wpmain:info:hdl:2441/6unm655ita9ojbuuc83c9h0is8 is not listed on IDEAS
    12. Roberto Galbiati & Emeric Henry & Nicolas Jacquemet & Max Lobeck, 2021. "How laws affect the perception of norms: Empirical evidence from the lockdown," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-14, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roberto Galbiati & Emeric Henry & Nicolas Jacquemet, 2018. "Dynamic effects of enforcement on cooperation," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 115(49), pages 12425-12428, December.
    2. Leonardo M. Klüppel & Lamar Pierce & Jason A. Snyder, 2018. "Perspective—The Deep Historical Roots of Organization and Strategy: Traumatic Shocks, Culture, and Institutions," Organization Science, INFORMS, vol. 29(4), pages 702-721, August.
    3. Jin, Gan, 2023. "Circle of fortune: The long-term impact of Western customs institution in China," Journal of Development Economics, Elsevier, vol. 163(C).
    4. Guangfan Sun & Xin Lin & Junyi Chen & Nuo Xu & Ping Xiong & Hanqi Li, 2023. "Cultural inclusion and corporate sustainability: evidence from food culture and corporate total factor productivity in China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-15, December.
    5. Guillermo Cruces & Martín A. Rossi & Ernesto Schargrodsky, 2023. "Dishonesty and Public Employment," American Economic Review: Insights, American Economic Association, vol. 5(4), pages 511-526, December.
    6. Leonard Hoeft & Wladislaw Mill & Alexander Vostroknutov, 2019. "Normative Perception of Power Abuse," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2019_06, Max Planck Institute for Research on Collective Goods.
    7. Antonio Cabrales & Irma Clots-Figueras & Roberto Hernán-Gonzalez & Praveen Kujal, 2020. "Instiutions, Opportunism and Prosocial Behavior: Some Experimental Evidence," Working Papers 20-17, Chapman University, Economic Science Institute.
    8. Casas, Agustín & Díaz, Guillermo & Trindade, André, 2017. "Who monitors the monitor? Effect of party observers on electoral outcomes," Journal of Public Economics, Elsevier, vol. 145(C), pages 136-149.
    9. Annalisa Frigo & Èric Roca Fernández, 2022. "Roots of gender equality: the persistent effect of beguinages on attitudes toward women," Journal of Economic Growth, Springer, vol. 27(1), pages 91-148, March.
    10. Costas Azariadis & Yannis M. Ioannides, 2023. "On the macroeconomics of corruption," Indian Economic Review, Springer, vol. 58(1), pages 105-147, July.
    11. Chaudhary, Latika & Rubin, Jared & Iyer, Sriya & Shrivastava, Anand, 2020. "Culture and colonial legacy: Evidence from public goods games," Journal of Economic Behavior & Organization, Elsevier, vol. 173(C), pages 107-129.
    12. Stelios Michalopoulos & Melanie Meng Xue, 2021. "Folklore," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(4), pages 1993-2046.
    13. Giuseppe Albanese & Guido Blasio & Paolo Sestito, 2016. "My parents taught Me. Evidence on the family transmission of values," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(2), pages 571-592, April.
    14. Giovanna d'Adda & Guido Blasio, 2017. "Historical Legacy And Policy Effectiveness: The Long-Term Influence Of Preunification Borders In Italy," Journal of Regional Science, Wiley Blackwell, vol. 57(2), pages 319-341, March.
    15. Sascha O. Becker & Katrin Boeckh & Christa Hainz & Ludger Woessmann, 2016. "The Empire Is Dead, Long Live the Empire! Long‐Run Persistence of Trust and Corruption in the Bureaucracy," Economic Journal, Royal Economic Society, vol. 126(590), pages 40-74, February.
    16. Emeric Henry & Nicolas Jacquemet & Roberto Galbiati, 2017. "Spillovers, Persistence and Learning: Institutions and the Dynamics of Cooperation," SciencePo Working papers Main halshs-01613850, HAL.
    17. Xue, Melanie Meng & Koyama, Mark, 2018. "Autocratic Rule and Social Capital: Evidence from Imperial China," MPRA Paper 84249, University Library of Munich, Germany.
    18. Ho, Hoang-Anh & Martinsson, Peter & Olsson, Ola, 2017. "The Origins of Cultural Divergence: Evidence from a Developing Country," Working Papers in Economics 714, University of Gothenburg, Department of Economics, revised Jun 2018.
    19. Ichino, Andrea & Anelli, Massimo & Colussi, Tommaso, 2021. "Aversion to breaking rules and migration," CEPR Discussion Papers 16052, C.E.P.R. Discussion Papers.
    20. Johnson, Noel D. & Koyama, Mark, 2017. "States and economic growth: Capacity and constraints," Explorations in Economic History, Elsevier, vol. 64(C), pages 1-20.

    More about this item

    Keywords

    repeated games; persistence of institutions; spillovers; experiments; Laws; social values; cooperation; learning;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:pseptp:halshs-01971468. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Caroline Bauer (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.