sanctioning institutions are in place. -- emotions ; sanctions ; cooperation ; experiment ; skin conductance responses …We use skin conductance responses and self-reports of hedonic valence to study the emotional basis of cooperation and …. The application of sanctions activates a "virtuous emotional circle" that accompanies cooperation. Emotionally aroused …

lead to suboptimal institutional choice. -- voting ; punishment ; voluntary contributions ; heterogeneity ; experiment …

cooperation within groups, it also has a detrimental impact on group earnings in the short run. Could the introduction of pre …-play threats to punish have enough of a beneficial impact on cooperation, while not incurring the cost associated with actual … punishment, so that they increase overall welfare? We report an experiment in which players can issue non-binding threats to …