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Learning to cooperate in the shadow of the law

Author

Listed:
  • Roberto Galbiati

    (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

    (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 nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Formal enforcement punishing defectors can sustain cooperation by changing incentives. In this paper we introduce a second effect of enforcement: it can also affect the capacity to learn about the group's cooperativeness. Indeed, in contexts with strong enforcement, it is difficult to tell apart those who cooperate because of the threat of fines from those who are intrinsically cooperative types. Enforcement can then potentially have a negative dynamic impact on cooperation when it prevents learning. We provide theoretical and experimental evidence in support of this mechanism. Using a lab experiment with independent interactions and random rematching, we observe that, in early interactions, having faced an environment with fines in the past decreases current cooperation. We further show that this results from the interaction between enforcement and learning: the effect of having met cooperative partners has a stronger effect on current cooperation when this happened in an environment with no enforcement.

Suggested Citation

  • Roberto Galbiati & Emeric Henry & Nicolas Jacquemet, 2024. "Learning to cooperate in the shadow of the law," PSE-Ecole d'économie de Paris (Postprint) halshs-04800439, HAL.
    • Handle: RePEc:hal:pseptp:halshs-04800439
    DOI: 10.1007/s40881-023-00159-x
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-04800439v1
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