Carnegie Mellon University
208 Porter Hall
Pittsburgh, PA, 15213
NBER Working Papers and Publications
|October 2012||Punishment and Cooperation in Stochastic Social Dilemmas|
with Howard Kunreuther: w18458
Previous findings on punishment have focused on environments in which the outcomes are known with certainty. In this paper, we conduct experiments to investigate how punishment affects cooperation in a two-person stochastic prisoner's dilemma environment where each person can decide whether or not to cooperate, and the outcomes of alternative strategies are specified probabilistically under a transparent information condition. In particular, we study two types of punishment mechanisms: 1) an unrestricted punishment mechanism: both persons can punish; and 2) a restricted punishment mechanism: only cooperators can punish non-cooperators. We show that the restricted punishment mechanism is more effective in promoting cooperative behavior than the unrestricted one in a deterministic social di...
Published: E. Xiao & H. Kunreuther, 2016. "Punishment and Cooperation in Stochastic Social Dilemmas," Journal of Conflict Resolution, vol 60(4), pages 670-693. citation courtesy of