Recent work using decontextualized economic games suggests that cooperation is a dynamic decision-making process: automatic responses typically support cooperation on average, while deliberation leads to increased selfishness. Here we performed two studies examining how these temporal effects...

The shirking incentives arising within team production are in general counteracted by monitoring and sanctioning. However, these mechanisms are usually associated with high monitoring costs and cannot be applied to all parts of the production process. In a laboratory experiment we analyze the...

Unequally distributed resources are ubiquitous. The decision of whether to promote competition or equality is often debated in societies and organizations. With heterogeneous endowments, we let subjects collectively choose between a public good that most benefits the less endowed, and a lottery...

When faced with the chance to help someone in mortal danger, what is our first response? Do we leap into action, only later considering the risks to ourselves? Or must instinctive self-preservation be overcome by will-power in order to act? We investigate this question by examining the testimony...

A key element of human morality is prosocial behavior. Humans are unique among animals in their willingness to pay costs to benefit unrelated friends and strangers. This cooperation is a critical part of our identity as moral beings. Here, we ask why humans cooperate, and what can explain...

We use a public-good experiment to analyze behavior in a decentralized asymmetric punishment institution. The institution is asymmetric in the sense that players differ in the effectiveness of their punishment. At the aggregate level, we observe remarkable similarities between outcomes in...

This paper studies how the existence of counter-punishment opportunities affects cooperation and welfare when agents face a social dilemma. Using a public-good game we find that under the threat of counter-punishment cooperators are less willing to punish free-riders. As a result, under both...

In this paper we discuss experimental evidence for two different institutional approaches to a possible resolution of the fundamental conflict between social welfare maximization and individual utility maximization. The basic workhorse for modelling this conflict is the voluntary contribution of...

What makes people willing to pay costs to help others, and to punish others’ selfishness? Why does the extent of such behaviors vary markedly across cultures? To shed light on these questions, we explore the role of formal institutions in shaping individuals’ prosociality and punishment. In...

How can we maximize the common good? This is a central organizing question of public policy design, across political parties and ideologies. The answer typically involves the provisioning of public goods such as fresh air, national defense, and knowledge. Public goods are costly to produce but...