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Reputation systems that rely on feedback from traders are important institutions for helping sustain trust in markets, while feedback information is usually considered a public good. We apply both theoretical models and experiments to study how raters' feedback behavior responds to different...
Persistent link: https://www.econbiz.de/10008560983
of the implicated parties who propose the punishment. In a prisoner's dilemma experiment, we find an independent third …This paper investigates how punishment promotes cooperation when the punishment enforcer is a third party independent … party vetoes not only punishment to the cooperators but punishment to the defectors as well. Compared with the case when the …
Persistent link: https://www.econbiz.de/10009402064
The need for justification is a widely observed social phenomenon. This paper develops a theoretical framework and reports laboratory evidence to show how pure justification pressure affects cooperative behavior in economic exchange environments. In a one-shot anonymous interaction, compared...
Persistent link: https://www.econbiz.de/10009422008
Inequity aversion and reciprocity have been identified as two primary motivations underlying human decision making. However, because income and wealth inequality exist to some degree in all societies, these two key motivations can point to different decisions. In particular, when a beneficiary...
Persistent link: https://www.econbiz.de/10005836275
laboratory experiment to examine how justification can combat profit-seeking punishment and promote the legitimacy of punishment …Punishment can lose its legitimacy if the enforcer can profit from delivering punishment. We use a controlled … punishment. However, majority third parties punish the sender if and only if the sender lies when they have to provide …
Persistent link: https://www.econbiz.de/10011109825