We study the coevolution of cooperation, preferences and cooperative signals in an environment where individuals engage in a signaling-extended prisoner's dilemma. We identify a new type of evolutionary equilibrium - a transitional equilibrium - which is constituted and stabilized by the dynamic...

This paper studies experimentally how the endogeneity of sanctioning institutions affects the severity of punishment in social dilemmas. We allow individuals to vote on the introduction of third-party-administered sanctions, and compare situations in which the adoption of this institution is...

The article suggests a new explanation for cooperation in large, unstructured societies that avoids the restrictions required in most previous attempts. Our explanation deals with the role of internalized norms. Even internalized norms, i.e. norms that alter the perceived utility from acting in...

Economists have a long tradition in identifying the evolution of cooperation in large, unstructured societies as a puzzle. We suggest a new explanation for cooperation which avoids restrictions of most previous attempts. Our explanation deals with the role of internalized norms for cooperation...