Third-Party Punishment and Counter-Punishment in One-Shot Interactions
7 Pages Posted: 24 Dec 2013
Date Written: December 23, 2013
This paper presents experimental evidence from a simple three-person game showing that many individuals are willing to avenge third-party punishment in one-shot interactions. The threat of counter-punishment has a large negative effect on the willingness of third parties to punish selfish behavior. In spite of this, the extent of selfish behavior is identical to that in a treatment without counterpunishment opportunities. We discuss explanations for this puzzling finding.
Keywords: third-party punishment, counter-punishment, norm enforcement, one-shot games
JEL Classification: C92, D70, H41
Suggested Citation: Suggested Citation