• Corpus ID: 231879944

On the Fragility of Third-party Punishment: The Context Effect of a Dominated Risky Investment Option

  title={On the Fragility of Third-party Punishment: The Context Effect of a Dominated Risky Investment Option},
  author={Changkuk Im and Jinkwon Lee},
Some studies have shown that third-party punishment (TPP) substantially exists in a controlled laboratory setting. However, only a few studies investigate the robustness of TPP. This study experimentally investigates to what extent TPP can be robust by offering an additional but unattractive risky investment option to a third party. We find that when both the punishment and investment options are available, the demand for punishment decreases whereas the demand for investment increases. These… 

Figures and Tables from this paper


Working Papers 2020-15 Cooperation and Norm-Enforcement under Impartial vs . Competitive Sanctions
The willingness of mere bystanders, or “third parties,” to incur costs to sanction non-cooperators in social dilemma situations has been documented in numerous studies. It is, however, not clear yet
The Dark Side of Altruistic Third-Party Punishment
This article experimentally studies punishment from unaffected third parties in ten different games. The authors show that third-party punishment exhibits several features that are arguably
The effects of endowment size and strategy method on third party punishment
Numerous experiments have shown that people often engage in third-party punishment (3PP) of selfish behavior. This evidence has been used to argue that people respond to selfishness with anger, and
Institutional Endogeneity and Third-Party Punishment in Social Dilemmas
This paper studies experimentally how the endogeneity of sanctioning institutions affects the severity of punishment in social dilemmas. We allow individuals to vote on the introduction of
Second and third party punishment under costly monitoring
In a laboratory experiment we study how costly punishment behavior of second and third parties in a social dilemma situation is affected by monitoring costs. Subjects have to pay a fee over and above
Third-Party Punishment: Retribution or Deterrence?
We conduct an experiment to examine the role of retribution and deterrence in motivating third party punishment. In particular, we consider how the role of these two motives may differ according to
Teams Do Inflict Costly Third-Party Punishment as Individuals Do: Experimental Evidence
This paper shows in an experimental setting that this behavioral finding extends to a situation where a pair of individuals jointly decides how strong a third-party punishment to impose and that this punishment behavior is robust to the size of social distance within pairs.
An exploration of third and second party punishment in ten simple games
Abstract This paper explores the motivations behind punishment from unaffected third parties and affected second parties using a within-subjects design in ten simple games. We apply a classification
Mixing the Carrots with the Sticks: Third Party Punishment and Reward
While the opportunity to punish selfish and reward generous behavior coexist in many instances in daily life, in most laboratory studies, the demand for punishment and reward are studied separately
Third-Party Punishment and Counter-Punishment in One-Shot Interactions
This paper presents experimental evidence from a simple three-person game showing that many individuals are willing to avenge third-party punishment in one-shot interactions. The threat of