Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 218: Welfare Implications of Peer Punishment in Unequal Societies

Martine Visser ()
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Martine Visser: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG

Abstract: We show that peer sanctioning increases cooperation in public goods experiments more in unequally endowed groups than in equally endowed groups. Punishment results in a redistribution of wealth from high to low endowment players within groups.

Keywords: Inequality; cooperation; punishment; public goods; welfare and poverty; social norms

JEL-codes: C90; D63; H41; I30; Q20; Z13

7 pages, January 31, 2006

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