Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7243344 | Journal of Economic Behavior & Organization | 2014 | 11 Pages |
Abstract
Sanctions are often so weak that a money maximizing individual would not be deterred. In this paper I test the hypothesis that imperfect sanctions may nonetheless serve a forward looking purpose if sufficiently many individuals are averse against advantageous inequity. Using a linear public good with centralized punishment, I find that participants increase contributions even if severity had been insufficient to deter a profit-maximizing individual. The more an individual is averse against exploiting others, the less it matters whether punishment was deterrent.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Christoph Engel,