Self-Governance in Generalized Exchange. A Laboratory Experiment on the Structural Embeddedness of Peer Punishment

Peer punishment is widely lauded as a decentralized solution to the problem of social cooperation. However, experimental evidence of its effectiveness primarily stems from public good structures. This paper explores peer punishment in another structural setting: a system of generalized exchange. In...

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Main Author: Georg Kanitsar
Format: Article
Language:English
Published: MDPI AG 2021-06-01
Series:Games
Subjects:
Online Access:https://www.mdpi.com/2073-4336/12/2/50
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author Georg Kanitsar
author_facet Georg Kanitsar
author_sort Georg Kanitsar
collection DOAJ
description Peer punishment is widely lauded as a decentralized solution to the problem of social cooperation. However, experimental evidence of its effectiveness primarily stems from public good structures. This paper explores peer punishment in another structural setting: a system of generalized exchange. In a laboratory experiment, a repeated four-player prisoner’s dilemma is arranged either in a public good structure or in a circular network of generalized exchange. The experimental results demonstrate that the merits of peer punishment do not extend to generalized exchange. In the public good, peer punishment was primarily altruistic, was sensitive to costs, and promoted cooperation. In generalized exchange, peer punishment was also altruistic and relatively frequent, but did not increase cooperation. While the dense punishment network underlying the public good facilitates norm enforcement, generalized exchange decreases control over norm violators and reduces the capacity of peer punishment. I conclude that generalized exchange systems require stronger forms of punishment to sustain social cooperation.
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spelling doaj.art-c2ed41ad818f4747b78c66ac8f7c4fc12023-11-21T23:32:07ZengMDPI AGGames2073-43362021-06-011225010.3390/g12020050Self-Governance in Generalized Exchange. A Laboratory Experiment on the Structural Embeddedness of Peer PunishmentGeorg Kanitsar0Institute for Sociology and Social Research, Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, AustriaPeer punishment is widely lauded as a decentralized solution to the problem of social cooperation. However, experimental evidence of its effectiveness primarily stems from public good structures. This paper explores peer punishment in another structural setting: a system of generalized exchange. In a laboratory experiment, a repeated four-player prisoner’s dilemma is arranged either in a public good structure or in a circular network of generalized exchange. The experimental results demonstrate that the merits of peer punishment do not extend to generalized exchange. In the public good, peer punishment was primarily altruistic, was sensitive to costs, and promoted cooperation. In generalized exchange, peer punishment was also altruistic and relatively frequent, but did not increase cooperation. While the dense punishment network underlying the public good facilitates norm enforcement, generalized exchange decreases control over norm violators and reduces the capacity of peer punishment. I conclude that generalized exchange systems require stronger forms of punishment to sustain social cooperation.https://www.mdpi.com/2073-4336/12/2/50generalized exchangepeer punishmentcooperationsocial networksembeddednesslaboratory experiment
spellingShingle Georg Kanitsar
Self-Governance in Generalized Exchange. A Laboratory Experiment on the Structural Embeddedness of Peer Punishment
Games
generalized exchange
peer punishment
cooperation
social networks
embeddedness
laboratory experiment
title Self-Governance in Generalized Exchange. A Laboratory Experiment on the Structural Embeddedness of Peer Punishment
title_full Self-Governance in Generalized Exchange. A Laboratory Experiment on the Structural Embeddedness of Peer Punishment
title_fullStr Self-Governance in Generalized Exchange. A Laboratory Experiment on the Structural Embeddedness of Peer Punishment
title_full_unstemmed Self-Governance in Generalized Exchange. A Laboratory Experiment on the Structural Embeddedness of Peer Punishment
title_short Self-Governance in Generalized Exchange. A Laboratory Experiment on the Structural Embeddedness of Peer Punishment
title_sort self governance in generalized exchange a laboratory experiment on the structural embeddedness of peer punishment
topic generalized exchange
peer punishment
cooperation
social networks
embeddedness
laboratory experiment
url https://www.mdpi.com/2073-4336/12/2/50
work_keys_str_mv AT georgkanitsar selfgovernanceingeneralizedexchangealaboratoryexperimentonthestructuralembeddednessofpeerpunishment