Friday Meeting - Nick Vriend (Queen Mary, University of London)


"Social Identity and Punishment in a Minimum Effort Game"

12-05-2017 - 10h00 à 12h00

Friday Meeting - Nick Vriend (Queen Mary, University of London)

"Social Identity and Punishment in a Minimum Effort Game"

Authors: Vessela Daskalova (Institute for Advanced Study, Toulouse School of Economics), Michalis Drouvelis (University of Birmingham) and Nicolaas J. Vriend (Queen Mary University of London)

Abstract : We study the impact of social identity and punishment in a Minimum Effort Game (MEG) experiment. In a first stage, subjects participated in some problem solving tasks, either as a group or individually. In a second stage, subjects played a one-shot two-player MEG, either with an In-group or an Out-group counterpart, or as individuals without group identity. The MEG in this second stage was either with or without punishment mechanism. In the treatments with punishment, subjects were given the opportunity to assign costly punishment points to their counterpart conditional on the effort levels chosen by their counterpart.
We find that social identity is more effective in promoting coordination (as measured by average effort levels) than punishment. Within a treatment, subjects punish negative deviations in the effort level of their counterpart harsher than positive deviations, whereas across treatments, the punishment function is flatter in the Out-group treatment than in the No-Identity treatment. The possibility of punishment reduces efficiency as measured by average net earnings.


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