Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/95938 
Year of Publication: 
2014
Series/Report no.: 
cege Discussion Papers No. 202
Publisher: 
University of Göttingen, Center for European, Governance and Economic Development Research (cege), Göttingen
Abstract: 
The question to what extent social environment affects how individuals govern their groups, has received no special academic attention, yet. Within the framework of a ten-period public goods experi&ment we analyse how social identity affects subjects' choice of punishment: They may either sanction group members by monetary and/or by non-monetary sanctions bearing differentconsequences on welfare. What is more, we are also the first to address how emotions influence the effectiveness of punishment in terms of maintaining contributions. Our results show that under the threat of both punishments identity-heterogeneous (out-) groups tend to contribute more to the public good than identity-homogenous (in-) groups. Nevertheless, subjects of out-groups are more likely to govern their group via monetary, in-group members rather via non-monetary punishment. What is more, we demonstrate that emotions of guilt and anger differently affect subsequent contributions dependent on the social environment.
Subjects: 
public goods
social identity
monetary and non-monetary peer-punishment
emotions
Document Type: 
Working Paper

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