Monetary and Non-Monetary Punishment in Public Goods Games with Teams.

Abstract

We experimentally investigate the behavior of teams in a public goods game with monetary and non-monetary punishment. Teams of two take part in a finitely repeated public goods game with and without punishment. We find that contributions without punishment are similar across teams and individuals. However, teams contribute significantly less than individuals under the threat of non-monetary punishment. Furthermore teams also contribute substantially lower under non-monetary punishment than monetary punishment. We also find evidence suggesting similar punishment decisions between teams and individuals, however teams are less (more) vindictive in assigning punishment under monetary (non-monetary) punishment than individuals. Finally, we find that teams are less reactive to monetary punishment than individuals.

Mir Adnan Mahmood
Mir Adnan Mahmood
PhD Candidate, Department of Economics

My research interests include Experimental Economics, Economics of Information and Microeconomic Theory.