Xiao, Erte; Tan, Fangfang - In: Journal of Institutional and Theoretical Economics (JITE) 170 (2014) 1, pp. 168-188
Punishment can lose its legitimacy if the enforcer can profit from delivering punishment. We examine how justification can promote the legitimacy of punishment in a one-shot sender-receiver game where an independent third party can punish the sender upon seeing whether the sender lied. Most...