Cooperation Under the Threat of Expulsion in a Public Goods Experiment

In a public goods experiment with the opportunity to vote to expel members of a group, we found that contributions rose to nearly 100% of endowments with significantly higher efficiency compared with a coexpulsion baseline. Expulsions were strictly of the lowest contributors, and there was an exceptionally strong fall-off in contributions in the last period, when the expulsion threat was unavailable. Our findings support the intuition that the threat of expulsion or ostracism is one device that helps groups to provide public goods.

[1]  T. Schelling The Strategy of Conflict , 1963 .

[2]  Sidney C. Sufrin,et al.  The Logic of Collective Action: Public Goods and the Theory of Groups. , 1966 .

[3]  M. Olson,et al.  The Logic of Collective Action: Public Goods and the Theory of Groups , 1969 .

[4]  H. Demsetz,et al.  Production, Information Costs, and Economic Organization , 1975, IEEE Engineering Management Review.

[5]  David M. Kreps,et al.  Rational cooperation in the finitely repeated prisoners' dilemma , 1982 .

[6]  J. Hirshleifer On the Emotions as Guarantors of Threats and Promises , 1984 .

[7]  C. Shapiro,et al.  Equilibrium Unemployment as a Worker Discipline Device , 1984 .

[8]  John Dupré,et al.  The Latest on the best : essays on evolution and optimality , 1987 .

[9]  R. Mark Isaac,et al.  Communication and Free-Riding Behavior: The Voluntary Contribution Mechanism , 1988 .

[10]  R. Mark Isaac,et al.  Group Size Effects in Public Goods Provision: The Voluntary Contributions Mechanism , 1988 .

[11]  James Andreoni,et al.  Why free ride?: Strategies and learning in public goods experiments , 1988 .

[12]  D. Hirshleifer,et al.  COOPERATION IN A REPEATED PRISONERS' DILEMMA WITH OSTRACISM , 1989 .

[13]  R. McKelvey,et al.  An experimental study of the centipede game , 1992 .

[14]  David F. Sally Conversation and Cooperation in Social Dilemmas , 1995 .

[15]  J. Andreoni Cooperation in Public-Goods Experiments: Kindness or Confusion? , 1995 .

[16]  J. Sonnemans,et al.  Value Orientations, Expectations and Voluntary Contributions in Public Goods. , 1996 .

[17]  Norman Frohlich,et al.  Some consequences of e-mail vs. face-to-face communication in experiment , 1998 .

[18]  V. Smith,et al.  Behavioral foundations of reciprocity: experimental economics and evolutionary psychology , 1998 .

[19]  E. Fehr,et al.  Cooperation and Punishment in Public Goods Experiments , 1999, SSRN Electronic Journal.

[20]  Karl-Martin Ehrhart,et al.  Série Scientifique Scientific Series Mobility and Cooperation: on the Run , 2022 .

[21]  U. Fischbacher,et al.  Are People Conditionally Cooperative? Evidence from a Public Goods Experiment , 2001 .

[22]  R. Evans,et al.  Cooperation and Punishment , 2001 .

[23]  L. Putterman,et al.  On some implications of evolutionary psychology for the study of preferences and institutions , 2000 .

[24]  Simeon Djankov,et al.  Enterprise Restructuring in Transition: A Quantitative Survey , 2002 .

[25]  E. Fehr,et al.  Fairness and Retaliation: The Economics of Reciprocity , 2000, SSRN Electronic Journal.

[26]  Robert Kurzban,et al.  Individual differences in cooperation in a circular public goods game , 2001 .

[27]  Joachim Weimann,et al.  The Effect of Communication Media on Cooperation , 2002 .

[28]  E. Fehr,et al.  Altruistic punishment in humans , 2002, Nature.

[29]  Stephan Meier,et al.  Pro-Social Behavior, Reciprocity or Both? , 2002, SSRN Electronic Journal.

[30]  C. Noussair,et al.  Monetary and Non-Monetary Punishment in the Voluntary Contributions Mechanism , 2003 .

[31]  Elinor Ostrom,et al.  Incorporating motivational heterogeneity into game-theoretic models of collective action ∗ , 2002 .

[32]  L. Putterman,et al.  Voluntary Association in Public Goods Experiments: Reciprocity, Mimicry and Efficiency , 2005 .

[33]  William T. Harbaugh,et al.  The Carrot or the Stick: Rewards, Punishments and Cooperation , 2002 .

[34]  J. Guttman,et al.  Repeated Interaction and the Evolution of Preferences for Reciprocity , 2003 .

[35]  Elinor Ostrom,et al.  Heterogeneous Preferences and Collective Action , 2003 .

[36]  Ernst Fehr,et al.  Detrimental effects of sanctions on human altruism , 2003, Nature.

[37]  Charles R. Plott,et al.  Decentralized management of common property resources: experiments with a centuries-old institution , 2003 .

[38]  Daniel Houser,et al.  Disposition, History and Contributions in Public Goods Experiments , 2007 .

[39]  H. Gintis,et al.  The Evolution of Strong Reciprocity: Cooperation in Heterogeneous Populations , 2004 .

[40]  Cooperation under the threat of expulsion in a public goods experiment , 2005 .

[41]  Louis Putterman,et al.  Do Non-Strategic Sanctions Obey the Law of Demand? The Demand for Punishment in the Voluntary Contribution Mechanism , 2003, Games Econ. Behav..

[42]  L. Putterman,et al.  Communication and punishment in voluntary contribution experiments , 2006 .

[43]  R. Boyd,et al.  Moral Sentiments and Material Interests: The Foundations of Cooperation in Economic Life , 2006 .