Nikiforakis, Nikos; Engelmann, Dirk - Department of Economics, Faculty of Business and Economics - 2008
Punishing free riders might promote cooperation, but it can also lead to feuds. We use a public good game with punishment opportunities to investigate whether the threat of feuds is e¢ ciency enhancing. Treatments di¤er with respect to whether a punish- ment can trigger a feud. In the main...