People are conditional rule followers

Experimental participants are more likely to follow an arbitrary rule the more others in theirreference group do so as well. The effect is most pronounced for individuals who follow few ruleswhen not knowing others’ behavior. Unlike what is observed for conditional cooperation,learning that only few others follow a rule does not reduce rule following

Infringers’ willingness to pay compensation versus fines

In many areas such as consumer law or competition law, legislators can opt between two alternative forms of sanctions to remedy wrongdoing: they can impose an infringer to pay either a fine or a compensation. There is a major research gap regarding the infringers’ reactions to the different forms of sanctions. This paper reports an experiment that investigated infringers’ willingness to pay compensation versus fines. Results show that regardless of victim characteristics (whether the victim is a company or an NGO), infringers are willing to pay higher amounts in compensation than in fines, view compensation as more fair and believe compensation is better able to restore their reputation. Compensation and fines did not differ in the extent to which they stimulated infringers’ willingness to take precautionary measures. Participants who inflicted harm to a company rather than an NGO, surprisingly viewed their sanction as more fair, irrespective of the type of sanction in place. Our findings highlight some important strengths of compensation from a infringer’s point of view that are to be weighed in the policy debate.</p

People are conditional rule followers

Experimental participants are more likely to follow an arbitrary rule the more others in their reference group do so as well. The effect is most pronounced for individuals who follow few rules when not knowing others’ behavior. Unlike what is observed for conditional cooperation, learning that only few others follow a rule does not reduce rule following

An exploration of third parties’ preference for compensation over punishment: six experimental demonstrations

Research suggests that to restore equity, third parties prefer compensation of a victim over the punishment of a perpetrator. It remains unclear, however, whether this preference for compensation is stable or specific to certain situations. In six exper- imental studies, we find that adjustments in the characteristics of the situation or in the available behavioral options hardly modify the preference of compensation over punishment. This preference for compensation was found even in cases where pun- ishment might refrain a perpetrator from acting unfairly again in the future, and even when punishment has a greater impact in restoring equity than compensation does. Thus, the preference of compensation over punishment appears to be quite robust. Implications and ideas for future research are discussed