We study information conditions under which individuals are willing to delegate their sanctioning power to a central authority. We design a public goods game in which players can move between institutional environments, and we vary the observability of others' contributions. We find that the...

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...