176 research outputs found

    On the Design of Peer Punishment Experiments

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    We discuss how technologies of peer punishment might bias the results that are observed in experiments. A crucial parameter is the “fine-to-fee” ratio, which describes by how much the punished subjects income is reduced relatively to the fee the punishing subject has to pay to inflict punishment. We show that a punishment technology commonly used in experiments embeds a variable fine-to-fee ratio and show that it confounds the empirical findings about why, whom, and how much subjects punish.sanctions, public goods, cooperation, experiments

    Peer Punishment in Teams: Emotional or Strategic Choice?

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    Punishing the free-riders of a team can promote group efficiency but is costly for the punisher. For this reason, economists see punishment as a second-order public good. We show in an experiment that subjects do not value punishment for its deterrence but instead for the satisfaction of retaliating. Punishment choices are made with little strategic reasoning.experiments ; public goods ; informal punishment ; emotions ; legal systems

    Are self-regarding subjects more rational?

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    Through an experiment, we investigate how the level of rationality relates to concerns for equality and efficiency. Subjects perform dictator games and a guessing game. More rational subjects are not more frequently of the selfregarding type. When performing a comparison within the same degree of rationality, self-regarding subjects show more strategic sophistication than other subjects.steps of reasoning, other-regarding preferences

    Emergence of Endogenous Legal Institutions: Property Rights and Community Governance in the Italian Alps'.

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    This paper studies the legal institutions set up by communities in the Italian Alps in the 13th – 19th century to manage their common pastures and forests. Over time, private-order institutions in the form of charters replaced informal arrangements sustained by the long-run interaction among villagers. Although costly to run, the charters accomplished several tasks that increased resource use efficiency. We present an empirical analysis of institutional choice of about two hundred communities and show that relative efficiency was an important factor in the selection of a governance regime.property rights ; transaction costs ; community enforcement ; sanctions ; natural resources ; common property