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  When to Leave Carrots for Sticks: On the Evolution of Sanctioning Institutions in Open Communities

Chugunova, M., Luhan, W., & Nicklisch, A. (2020). When to Leave Carrots for Sticks: On the Evolution of Sanctioning Institutions in Open Communities. Economics Letters, 191: 109155. doi:10.1016/j.econlet.2020.109155.

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Item Permalink: http://hdl.handle.net/21.11116/0000-0002-6A5A-3 Version Permalink: http://hdl.handle.net/21.11116/0000-0007-AD44-A
Genre: Journal Article

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Description:
Also published as: Working Paper Nr. 2017-09 on the DFG Research Group 2104

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 Creators:
Chugunova, Marina1, Author              
Luhan, Wolfgang2, Author
Nicklisch, Andreas2, Author
Affiliations:
1MPI for Innovation and Competition, Max Planck Society, ou_2035292              
2External Organizations, ou_persistent22              

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Free keywords: open communities, Voting with Feet, cooperation, sanctions, public goods
 Abstract: When asked, people dislike punishment institutions, although punishment is more effective than rewards to maintain cooperation in social dilemmas. Which institution do they choose in the long run? We study migration patterns in a laboratory experiment that allows participants to migrate continuously between punishment and reward communities. The majority of participants initially chooses the reward institution, but a substantial number of subjects joins the less profitable punishment community subsequently. In this case, the mere threat of punishment establishes high contributions. Income differences and missing compensations for cooperators in the reward community are the key factors for the decision to migrate.

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Language(s): eng - English
 Dates: 2020
 Publication Status: Published in print
 Pages: -
 Publishing info: -
 Table of Contents: -
 Rev. Type: -
 Identifiers: DOI: 10.1016/j.econlet.2020.109155
 Degree: -

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Title: Economics Letters
  Abbreviation : Econ. Lett.
Source Genre: Journal
 Creator(s):
Affiliations:
Publ. Info: Amsterdam : North-Holland
Pages: - Volume / Issue: 191 Sequence Number: 109155 Start / End Page: - Identifier: ISSN: 0165-1765
ZDB: 717210-2
CoNE: https://pure.mpg.de/cone/journals/resource/954925481602