Group Cooperation Under Alternative Punishment Institutions : An Experiment

In an experiment we study different peer punishment institutions to shed light on how cooperative norms can emerge in groups. The results suggest that there is a strong emotional component that drives agents to punish and that alters their ability to behave strategically. Moreover, we identify an institution that particularly encourages pro-social behavior; when a coalition of at least two subjects in the group must agree before somebody is punished, group performance dramatically increases