Abstract
In the context of repeated public good contribution games, we experimentally investigate
the impact of democratic punishment, when members of a group decide by majority voting
whether to inflict punishment on another member, relative to individual peer-to-peer
punishment. Democratic punishment leads to more cooperation and higher average payoffs,
both under perfect and imperfect monitoring of contributions, primarily by curbing
anti-social punishment and thereby establishing a closer connection between a member’s
contribution decision and whether subsequently being punished by others. We also find
that participating in a democratic punishment procedure makes even non-contributors’
punishment intentions more pro-social.
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