The Effect of Rewards and Sanctions in Provision of Public Goods

  title={The Effect of Rewards and Sanctions in Provision of Public Goods},
  author={M. Sefton and Robert Shupp and James M. Walker},
  journal={ERN: Experimental Economics (Topic)},
I. INTRODUCTION The experimental literature on voluntary public goods provision shows that groups attain better outcomes than implied by economic models based on individuals maximizing own-monetary earnings. At the same time, however, groups uniformly fail to achieve optimal outcomes, suggesting that incentives to free ride are important. Moreover, when the decision situation is repeated, the group outcome often deteriorates with repetition, suggesting that, in many settings, a group's ability… Expand
Selecting public goods institutions: Who likes to punish and reward?
The authors extend the standard public goods game in a variety of ways, in particular by allowing for endogenous preference over institutions and by studying the relationship between individualExpand
Asymmetric effects of social and economic incentives on cooperation in real effort based public goods games
A real effort public goods game is constructed in an online experiment and the effect different types of incentives have on cooperation is analyzed, finding that in the setting economic and social incentives produce an asymmetric effect. Expand
Punishment in a Linear Public Good Game with Productivity Heterogeneity
SummaryAlthough it is widely recognized that sanction increases cooperation in a public good game, comparatively little attention has been paid to a scenario in which agents have heterogeneousExpand
The effect of social rewards and punishments on learning and cooperative decision-making
Cooperation in economic games is a puzzle. Under certain laboratory conditions, this strategy has the potential to reduce individual payoffs, thus is not economically rational. Yet, cooperation isExpand
Chapter 22 Reciprocity, altruism, and cooperative production
Abstract Economists believe that a problem of team production results from the desirability of production in (sometimes large) groups, the difficulty of rewarding individual group members based onExpand
Framing Matters : Sanctioning in Public Good Games with Parallel Bilateral Relationships ∗
Public good games are used to study whether and how people can achieve cooperative behavior in the face of immediate incentives to behave more selfishly. Specifically, they are often used to studyExpand
First carrot, then stick: how the adaptive hybridization of incentives promotes cooperation
Here, it is demonstrated that an institutional sanctioning policy called ‘first carrot, then stick’ is unexpectedly successful in promoting cooperation, and the adaptive hybridization of incentives offers the ‘best of both worlds’ by combining the effectiveness of rewarding in establishing cooperation with the effective of punishing in recovering it. Expand
Long-lasting effects of temporary incentives in public good games
This paper addresses the question of cooperative behaviours in the long run after the removal of incentives to contribute to a public good game. This question becomes central when looking both atExpand
Endogenous choice of institutional punishment mechanisms to promote social cooperation
Does the desirability of social institutions for public goods provision depend on the extent to which they include mechanisms for endogenous enforcement of cooperative behavior? We considerExpand
Implementing punishment and reward in the public goods game: the effect of individual and collective decision rules
Punishments and rewards are effective means for establishing cooperation in social dilemmas. We compare a setting where actors individually decide whom to sanction with a setting where sanctions areExpand


Rewards and Sanctions and the Provision of Public Goods in One-Shot Settings
A burgeoning literature in experimental studies of the Voluntary Contribution Mechanism focuses on the ability of institutions that allow the monitoring, sanctioning, and/or rewarding of others toExpand
Do non-strategic sanctions obey the law of demand? The demand for punishment in the voluntary contribution mechanism
It is learned that both price and the extent to which the recipient's contribution is below the group mean are significant determinants of the quantity of punishment demanded. Expand
An Experimental Investigation of Excludable Public Goods
This paper extends the research on incentive compatible institutions for the provision of public goods by imposing a minimum contribution that must be met in order for an individual to enjoy theExpand
Cooperation in Public Goods Experiments
A public good has two distinctive characteristics. Its fundamental characteristic is non-rivalry in consumption. In the words of Samuelson (1954), “each individual’s consumption of such a good leadsExpand
Monetary and Non-Monetary Punishment in the Voluntary Contributions Mechanism
In this paper we replicate and extend the experiment of Fehr and Gaechter (2000) that analyzes the effect of an opportunity to punish others on the level contributions in the Voluntary ContributionsExpand
Cooperation and Punishment in Public Goods Experiments
This paper provides evidence that free riders are heavily punished even if punishment is costly and does not provide any material benefits for the punisher. The more free riders negatively deviateExpand
A Simple Mechanism for the Efficient Provision of Public Goods - Experimental Evidence
This paper presents an experimental examination of the Falkinger (1996) mechanism for overcoming the free-rider problem. The basic idea of the mechanism is that deviations from the mean contributionExpand
Punishing Free-Riders: How Group Size Affects Mutual Monitoring and the Provision of Public Goods
  • J. Carpenter
  • Economics, Computer Science
  • Games Econ. Behav.
  • 2007
It is found that large groups contribute at rates no lower than small groups because punishment does not fall appreciably in large groups, however, hindrances to monitoring do reduce the provision of the public good. Expand
Driving Forces Behind Informal Sanctions
This paper investigates the driving forces behind informal sanctions in cooperation games and the extent to which theories of fairness and reciprocity capture these forces. We find that cooperators'Expand
The Carrot vs. the Stick in Work Team Motivation
This paper reports on the use of carrot (positive) and stick (negative) incentives as methods of increasing effort among members of work teams. We study teams of four members in a laboratoryExpand