Laboratory experiments by Fudenberg and Pathak (2010), and Vyrastekova, Funaki and Takeuch (2008) show that punishment is able to sustain cooperation in groups even when it is observed only in the end of the interaction sequence. Our results demonstrate that the real power of unobserved...

Under a great variety of legally relevant circumstances, people have to decide whether or not to cooperate, when they face an incentive to defect. The law sometimes provides people with sanctioning mechanisms to enforce pro-social behavior. Experimental evidence on voluntary public good...

We analyze the interplay between cooperation norms and people's punishment behavior in a social-dilemma game with multiple punishment stages. By combining multiple punishment stages with self- contained episodes of interaction, we are able to disentangle the e ects of retaliation and...

Carpenter and Matthews (2009) examine the cooperation norms determining people's punishment behavior in a social-dilemma game. Their findings are striking: absolute norms outperform the relative norms commonly regarded as the determinants of punishment. Using multiple punishment stages and...