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This paper reports results from an experiment studying how fines, leniency programs and reward schemes for whistleblowers affect cartel formation and prices. Antitrust without leniency reduces cartel formation, but increases cartel prices: subjects use costly fines as (altruistic) punishments....
Persistent link: https://www.econbiz.de/10010320343
Using a laboratory experiment, we examine whether informal monetary sanctions can lead to better coordination in a … repeated minimum effort coordination game. While most groups first experience inefficient coordination, the efficiency … increases substantially after introducing an ex post sanctioning possibility. Namely, subjects can assign punishment points to …
Persistent link: https://www.econbiz.de/10010291833
enforcement mechanisms of punishment and norms cannot achieve higher cooperation rates. In fact, conformity is significantly …, when cooperation is expensive we find that the combination of punishment and empirical information about others conformity …A stream of research examining the effect of punishment on conformity indicates that punishment can backfire and lead …
Persistent link: https://www.econbiz.de/10012029776
A stream of research examining the effect of punishment on conformity indicates that punishment can backfire and lead … enforcement, enabling agents to justify selfish behavior. We address the question of punishment legitimacy by shedding light upon … the importance of social norms and their interplay with punishment. People are often presented with incomplete norm …
Persistent link: https://www.econbiz.de/10012262106
Research examining the effect of weak punishment on conformity indicates that punishment can backfire and lead to … of social norms and their interplay with weak punishment in the context of a trust game. Across six conditions, we … systematically vary the combination of existence of weak punishment and norm information. Norm information may refer either to what …
Persistent link: https://www.econbiz.de/10012582130
We consider a dynamic model of conformity that permits both a conformist and non-conformist equilibrium. We provide … conditions under which conformity can 'invade' a population. More precisely, starting from a non-conformist equilibrium, we show … that the conformity of an arbitrarily small proportion of the population can lead to the spread of conformism and the …
Persistent link: https://www.econbiz.de/10010290635
communication of trust maintains cooperation upon the removal of centralized (Study 1), thirdparty (Study 2), and peer punishment …An effective way to foster cooperation is to monitor behaviour and sanction freeriding. Yet, previous studies have … shown that cooperation quickly declines when sanctioning mechanisms are removed. We test if explicitly expressing trust in …
Persistent link: https://www.econbiz.de/10015045399
heterogeneous groups. When punishment is not allowed all groups converge towards free-riding. With punishment, contributions … that these differences are not accidentally but enforced by punishment. The enforced contribution norms are related to …
Persistent link: https://www.econbiz.de/10010265993
punishment is widely agreed to be potentially useful in fostering cooperation, many recent results in psychology and economics … interests, we find that privately implemented punishment reduces cooperation relative to a baseline treatment without punishment …Development of human societies requires cooperation among unrelated individuals and obedience to social norms. Although …
Persistent link: https://www.econbiz.de/10010267299
heterogeneous groups. When punishment is not allowed all groups converge towards free-riding. With punishment, contributions … that these differences are not accidental but enforced by punishment. The enforced contribution norms are related to …
Persistent link: https://www.econbiz.de/10010269498