Christoph Bühren , Astrid Dannenberg , Philipp Händel
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引用次数: 0
Abstract
We use an experiment to study the demand for complete and incomplete formal punishment institutions and their ability to promote cooperation. Complete punishment institutions are implemented by the whole group and bind everyone. Incomplete punishment institutions are implemented by a subgroup and bind only the members of this subgroup. We distinguish between strictly incomplete institutions, in which only one subgroup can bind itself while the remaining individuals are unbound, and potentially incomplete institutions, in which two subgroups can bind themselves independently and separately in different institutions, potentially binding everyone. Theoretically, the demand for such formal punishment institutions should depend only on the benefit of cooperation within the group or subgroup bound by the institution. However, we hypothesize and the experimental results confirm that, in the case of incomplete punishment institutions, the benefit of cooperation has a much smaller impact on the demand than in complete punishment institutions. Instead, individuals’ cooperativeness and coordination between the subgroups become important determinants.
期刊介绍:
The Journal of Economic Behavior and Organization is devoted to theoretical and empirical research concerning economic decision, organization and behavior and to economic change in all its aspects. Its specific purposes are to foster an improved understanding of how human cognitive, computational and informational characteristics influence the working of economic organizations and market economies and how an economy structural features lead to various types of micro and macro behavior, to changing patterns of development and to institutional evolution. Research with these purposes that explore the interrelations of economics with other disciplines such as biology, psychology, law, anthropology, sociology and mathematics is particularly welcome.