Sanction Enforcement among Third Parties: New Experimental Evidence from Two Societies
Author: Kenju Kamei, Smriti Sharma, Matthew J. Walker
Date: 2023/4/26 (revised edition:2023/8/21)
No: DP2023-010
JEL Classification codes: C92, H41, D01, D91
Language: English
[ Abstract / Highlights ]
Sanction enforcement offers the potential to mitigate free riding on punishment among multiple third parties. This paper experimentally studies third-party enforcement of social norms in a prisoner’s dilemma game with and without opportunities for higher-order punishment. Based on insights from the literature on cooperation, kinship and moral systems, we compare people’s sanction enforcement across student subjects in two societies: India and the United Kingdom. The experiment results show that, in both societies, third parties’ first-order punishment is most severe for defectors and that a third party’s failure to punish a defector invites higher-order punishment from their fellow third parties. These findings are consistent with a model of social preferences and literature from anthropology and theoretical biology. Further, third-party punishment is stronger in the UK than in India, consistent with the conjecture that people in a society with relatively looser ancestral kinship ties are more willing to engage in pro-social punishment. However, in contrast to the theory or conjecture, there is clear difference in the group size effects between the two research sites: whereas third parties free ride on others’ punitive acts in the UK, they punish more when in the presence of other third parties in India.
Sanction enforcement offers the potential to mitigate free riding on punishment among multiple third parties. This paper experimentally studies third-party enforcement of social norms in a prisoner’s dilemma game with and without opportunities for higher-order punishment. Based on insights from the literature on cooperation, kinship and moral systems, we compare people’s sanction enforcement across student subjects in two societies: India and the United Kingdom. The experiment results show that, in both societies, third parties’ first-order punishment is most severe for defectors and that a third party’s failure to punish a defector invites higher-order punishment from their fellow third parties. These findings are consistent with a model of social preferences and literature from anthropology and theoretical biology. Further, third-party punishment is stronger in the UK than in India, consistent with the conjecture that people in a society with relatively looser ancestral kinship ties are more willing to engage in pro-social punishment. However, in contrast to the theory or conjecture, there is clear difference in the group size effects between the two research sites: whereas third parties free ride on others’ punitive acts in the UK, they punish more when in the presence of other third parties in India.