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in terms of evolutionary game theory. Based on the dilemmatic donation game, we introduce a strategy of commitment to … both cooperation and peer punishment. To make the commitment credible, we assume that those willing to commit have to make … punish free riders and non-committers. It turns out that the deposit-based commitment offers both the efficiency of peer …
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Recent experimental studies question whether societies can selfgovern social dilemmas with the help of decentralized punishment opportunities. One important challenge for the mechanism is imperfect information about cooperative behavior. It has been shown that imperfect information increases...
Persistent link: https://www.econbiz.de/10012058649
Flexible repayment schedules allow borrowers to invest in profitable yet risky projects, but practitioners fear they erode repayment morale. We study repayment choices in rigid and flexible loan contracts that allow discretion in repayment timing. To separate strategic repayment choices from...
Persistent link: https://www.econbiz.de/10012227662
We elicit individual-level peer-punishment types in a cooperation (social dilemma) and a coordination (weakest link) problem. In line with previous literature, we find heterogeneity in peer-punishment in both environments. Comparing punishment behavior across the two environments within subject,...
Persistent link: https://www.econbiz.de/10012227709
Is punishment of free riders driven by descriptive social norms of cooperation and punishment? We conduct experiments in which participants interact in a one-shot social dilemma with punishment. We study how punishment of free riders is influenced by behavior among members of a payoff-irrelevant...
Persistent link: https://www.econbiz.de/10012389694
Peer punishment is widely lauded as a decentralized solution to the problem of social cooperation. However, experimental evidence of its effectiveness primarily stems from public good structures. This paper explores peer punishment in another structural setting: a system of generalized exchange....
Persistent link: https://www.econbiz.de/10013200112
In the frame of decentralization reforms in Namibia, local water point associations evolved that have to collect water fees from community members to cover maintenance costs. Enforcement, however, is weak and water point associations have to rely on moral pleas. As a consequence, several users...
Persistent link: https://www.econbiz.de/10010286416
We study the individual behavior of students and workers in an experiment where they repeatedly face the same cooperative task. The data show that clerical workers differ from college students in overall cooperation rates, strategy adoption and use of punishment opportunities. Students cooperate...
Persistent link: https://www.econbiz.de/10010291472