43 Pages Posted: 28 Sep 2006
Date Written: August 29, 2006
A growing number of field and experimental studies focus on the institutional arrangements by which individuals are able to solve collective action problems. Important in this research is the role of reciprocity and institutions that facilitate cooperation via opportunities for monitoring, sanctioning, and rewarding others. Sanctions represent a cost to both the participant imposing the sanction and the individual receiving the sanction. Rewards represent a zero sum transfer from participants giving to those receiving rewards. We contrast reward and sanction institutions in regard to their impact on cooperation and efficiency in the context of a public goods experiment.
Suggested Citation: Suggested Citation
Sefton, Martin and Shupp, Robert and Walker, James M., The Effect of Rewards and Sanctions in Provision of Public Goods (August 29, 2006). CAEPR Working Paper No. 2006-005. Available at SSRN: https://ssrn.com/abstract=932683 or http://dx.doi.org/10.2139/ssrn.932683