Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/51999 
Year of Publication: 
2011
Series/Report no.: 
IZA Discussion Papers No. 5592
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
We use skin conductance responses and self-reports of hedonic valence to study the emotional basis of cooperation and punishment in a social dilemma. Emotional reaction to free-riding incites individuals to apply sanctions when they are available. The application of sanctions activates a virtuous emotional circle that accompanies cooperation. Emotionally aroused cooperators relieve negative emotions when they punish free riders. In response, the free-riders experience negative emotions when punished, and increase their subsequent level of cooperation. The outcome is an increased level of contribution that becomes the new standard or norm. For a given contribution level, individuals attain higher levels of satisfaction when sanctioning institutions are in place.
Subjects: 
emotions
sanctions
cooperation
experiment
skin conductance responses
JEL: 
C92
D62
D63
D64
D74
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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