Intentionality Matters for Third-Party Punishment but not Compensation in Trust Games

30 Pages Posted: 4 Apr 2022

See all articles by Cristina Bicchieri

Cristina Bicchieri

University of Pennsylvania

Marta Maras

Gettysburg College

Date Written: March 9, 2022

Abstract

We investigate how the intentionality of investors or trustees’ actions affects third
party compensation and punishment interventions after a trust game. Investors
and trustees are randomly assigned to conditions where they either make
intentional choices or their choices are made by a random machine. Overall, we
find that lack of reciprocity is punished more than lack of trust, and third parties
exhibit strong preferences for compensation over punishment. We find that only
the punishment choice is affected by the intentionality of parties’ actions, whereas
compensation occurs in all conditions, whether lack of trust or reciprocity has been
intentional or unintentional.

Keywords: Social norms; Trust game; Compensation; Punishment; Reciprocity; Normative expectations

JEL Classification: C72; C91; D63

Suggested Citation

Bicchieri, Cristina and Maras, Marta, Intentionality Matters for Third-Party Punishment but not Compensation in Trust Games (March 9, 2022). Available at SSRN: https://ssrn.com/abstract=4053668 or http://dx.doi.org/10.2139/ssrn.4053668

Cristina Bicchieri (Contact Author)

University of Pennsylvania ( email )

Philadelphia, PA 19104
United States
215-898-5820 (Phone)

Marta Maras

Gettysburg College

300 North Washington Street
Gettysburg, PA 17325
United States

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