| Abstract: |
A number of studies have shown that peer punishment can sustain cooperation
in
public good games. This paper shows that the format used to give
subjects
feedback is critical for the e¢ cacy of punishment. Providing
subjects with infor-
mation about the earnings of their peers leads to lower
contributions and earnings
compared to a treatment in which subjects receive
information about the contri-
butions of their peers even though the feedback
format does not a¤ect incentives.
The data suggest that this is because the
feedback format acts as a coordination
device, which in?uences the
contribution standards that groups establish |