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| 14-05-2015 Cooperation and retaliation in public good games Does counter-punishment really destroy cooperation? Dieko Bakker (presenting) Jacob Dijkstra Andreas Flache 1

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| 14-05-2015

Cooperation and retaliation in public good games

Does counter-punishment really destroy cooperation? Dieko Bakker (presenting) Jacob Dijkstra Andreas Flache

1

| Dieko Bakker / University of Groningen / ICS 14-05-2015

Enforcing cooperation

› Punishment and rewards in collective action (e.g. Fehr & Gächter 2002)

› Free riders get punished – contributions

increase

› But what about counter-punishment? (e.g. Nikiforakis 2008)

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| Dieko Bakker / University of Groningen / ICS 14-05-2015

Counter-punishment in PGGs 3

Contributions Punishment Counter-punishment

Source: Nikiforakis (2008)

| Dieko Bakker / University of Groningen / ICS 14-05-2015

Why does this happen? 4

Counter-punishment

Less punishment

Lower contributions

| Dieko Bakker / University of Groningen / ICS 14-05-2015

This presentation

› Counter-punishment happens

› Counter-punishment deters punishment… but it mainly deters antisocial punishment

› Counter-punishment has no impact on

contribution levels

5

| Dieko Bakker / University of Groningen / ICS 14-05-2015

Conditions for counter-punishment

› Design features facilitating counter-punishment Anonymous and consequence-free Highly salient

› Introducing future consequences (e.g. Flache & Macy 1996; Flache 2002; Flache & Bakker 2012;

Nikiforakis & Engelmann 2011; Denant-Boemont et al 2007)

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| Dieko Bakker / University of Groningen / ICS 14-05-2015

Four treatments

› Punishment (Fehr & Gächter 2000)

› .. plus Counter-Punishment

(Nikiforakis 2008)

› … plus Non-Anonymous

› … plus Reminder

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| Dieko Bakker / University of Groningen / ICS 14-05-2015

Expectations 8

Punishment

Counter-Punishment

Non-Anonymous

Reminder

Level of Counter-Punishment

Level of Punishment

Level of Contributions

| Dieko Bakker / University of Groningen / ICS 14-05-2015

Data

› 88 participants across 7 sessions

› 2 to 4 treatmens played per session › Order of treatments varied

› 2200 Contribution decisions › 6600 Punishment decisions › 389 Counter-punishment decisions

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| Dieko Bakker / University of Groningen / ICS 14-05-2015

Analysis highlights

› Multilevel models Hurdle models for punishment and counter-

punishment

› Decisions nested in individuals and in groups

› Always controlling for time and for order of treatments Punishment: also controlling for contribution

target vs group / target vs self Counter-punishment: same, and controlling

for severity of received punishment

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| Dieko Bakker / University of Groningen / ICS 14-05-2015

52% 48%

Of anti-social punishments

35%

65%

Of all punishments

Counter-punishment frequent 11

Counter-punishment

Less punishment

Lower contributions

| Dieko Bakker / University of Groningen / ICS 14-05-2015

Counter-punishment frequent 12

Counter-punishment

Less punishment

Lower contributions

… in all treatments

| Dieko Bakker / University of Groningen / ICS 14-05-2015

Punishment deterred 13

Counter-punishment

Less punishment

Lower contributions

| Dieko Bakker / University of Groningen / ICS 14-05-2015

Contributions unaffected 14

Counter-punishment

Less punishment

Lower contributions

| Dieko Bakker / University of Groningen / ICS 14-05-2015

Why do contributions not deteriorate?

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| Dieko Bakker / University of Groningen / ICS 14-05-2015

Prosocial punishment deterred…

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Proscocial punishment opportunities taken

| Dieko Bakker / University of Groningen / ICS 14-05-2015

... antisocial deterred more

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Antiscocial punishment opportunities taken

| Dieko Bakker / University of Groningen / ICS 14-05-2015

Changing balance

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Percentage of punishment which is antisocial

| Dieko Bakker / University of Groningen / ICS 14-05-2015

Conclusions

› Counter-punishment behavior is robust to variations in potential future consequences

› (The threat of) counter-punishment deters punishment

› But antisocial punishment is deterred more than prosocial punishment

› And contributions do not necessarily deteriorate

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| 14-05-2015

Thank you for your attention

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Dieko Bakker

[email protected]

Co-authored by Jacob Dijkstra & Andreas Flache

| Dieko Bakker / University of Groningen / ICS 14-05-2015

Related references

› Fehr, Ernst, and Simon Gächter. 2002. “Altruistic Punishment in Humans.” Nature 415(6868):137–40.

› Fehr, Ernst, and Simon Gächter. 2000. “Fairness and Retaliation: The Economics of Reciprocity.” Journal of Economic Perspectives 14(3):159–82.

› Nikiforakis, Nikos. 2008. “Punishment and Counter- Punishment in Public Good Games: Can We Really Govern Ourselves?” Journal of Public Economics 92(1):91–112.

› Nikiforakis, Nikos, and Dirk Engelmann. 2011. “Altruistic Punishment and the Threat of Feuds.” Journal of Economic Behavior and Organization 78(3):319–32.

› Denant-Boemont, Laurent, David Masclet, and Charles N. Noussair. 2007. “Punishment, Counterpunishment and Sanction Enforcement in a Social Dilemma Experiment.” Economic Theory 33(1):145–67.

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