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How peer-punishment affects cooperativeness in homogeneous and heterogeneous groups: A public goods experiment with social identity

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  • Bicskei, Marianna
  • Lankau, Matthias
  • Bizer, Kilian

Abstract

This article analyzes how the anticipation of peer-punishment affects cooperativeness in the provision of public goods under social identity. For this purpose we conduct one-shot public good games with induced social identity and implement in-group, out-group and random matching protocols. Our measure of cooperativeness is subjects' conditional contribution elicited via the strategy method, which allows for observing behavior contingent on every possible level of group members' cooperation. We demonstrate, firstly, that the social environment is a determinant of how the threat of peer-punishment influences cooperation. The strongest increase is clearly evident when subjects interact with members of different identities, which is especially the case for individuals who were initially categorized as freeriders. Secondly, anticipation of peer-punishment clearly eliminates the typically existing ingroup bias without punishment and renders out-group members to be as cooperative as ingroups members. Lastly, the results indicate that the institutions of peer-punishment and social identity may be complemented in order to raise subjects' cooperativeness.

Suggested Citation

  • Bicskei, Marianna & Lankau, Matthias & Bizer, Kilian, 2014. "How peer-punishment affects cooperativeness in homogeneous and heterogeneous groups: A public goods experiment with social identity," University of Göttingen Working Papers in Economics 200, University of Goettingen, Department of Economics.
    • Handle: RePEc:zbw:cegedp:200
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    More about this item

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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