This paper reports an experiment which compares behaviour in two punishment regimes: (i) a standard public goods game with punishment in which subjects are given the opportunity to punish other group members (democratic punishment regime) and (ii) a public goods game environment where all group members exogenously experience an automatic reduction of their income (irrespective of their behaviou...

Table A1. Accountability Theory and Deterrence Theory Compared Element Deterrence Theory Accountability Theory Objective of theory Explains how to reduce antisocial behaviors. Explains how to reduce antisocial behaviors or increase prosocial behaviors. Central mechanism Sanctions. Self-image preservation and social desirability. External component Externally imposed sanctions. Person or organiz...

a r t i c l e i n f o Microfinance is a vital source of funding for micro-entrepreneurs in emerging markets and underdeveloped nations. The emphasis in the literature on social sanctions as a mechanism for ensuring high repayment rates may be misplaced. We propose that the construct of harmonious social relations needs to be added in order to explain repayment rates and that high repayment rate...

Cooperation in joint enterprises can easily break down when self-interests are in conflict with collective benefits, causing a tragedy of the commons. In such social dilemmas, the possibility for contributors to invest in a common pool-rewards fund, which will be shared exclusively among contributors, can be powerful for averting the tragedy, as long as the second-order dilemma (i.e. withdrawin...

Behavioral norms consist of two components: a cognitive component of obligation that is thememory repository of social standards, and an emotional component of sanctions that are the feelings and physiological states that result when actual behavior is consistent or not consistent with the obligation. This article analyzes the cognitive and emotional components of norms identiŽ ed in three stud...

Sanctions are used ubiquitously to enforce obedience to social norms. Recent field studies and laboratory experiments have demonstrated, however, that cooperation is sometimes reduced when incentives meant to promote pro-social decisions are added to the environment. Although a variety of explanations have been suggested, the neural foundations of this effect have not been fully explored. Using...

Humans are much more cooperative than other vertebrates. In other species, cooperation is mainly limited to close relatives, there is little division of labor, no trade, and no large scale conflict, the sick and disabled must fend for themselves, and the strong take from the weak without fear of sanctions by third parties. In contrast, division of labor, trade, and large scale conflict are prom...