Costly punishment's scarcity does not belie strong reciprocity theory as Guala claims. In the presence of strong reciprocators, strategic defectors will cooperate and sanctioning will not occur. Accordingly, natural field experiments are necessary to assess a reading of costly punishment experiments. One such field experiment exists, and it supports the hypothesis that costly punishment promotes cooperation.

Many studies show that punishment, although able to stabilize cooperation at high levels, destroys gains which makes it less efficient than alternatives with no punishment. Standard public goods games (PGGs) in fact show exactly these patterns. However, both evolutionary theory and real world institutions give reason to expect institutions with punishment to be more efficient, particularly in the long run. Long-term cooperative partnerships with punishment threats for non-cooperation should outperform defection prone non-punishing ones. This article demonstrates (...) that fieldwork data from hunter-gatherers, common pool resource management cases and even PGGs support this hypothesis. Although earnings in PGGs with a punishment option may be lower at the beginning, efficiency increases dramatically over time. Most ten-period PGGs cannot capture this change because their time horizon is too short. (shrink)

This study examines whether penalties issued to Chinese listed companies by securities regulators for violations of corporate law affect the cost of debt, and the moderating role of corporate social responsibility fulfillment on this relationship. Our sample consists of firms listed on Shanghai and Shenzhen stock exchanges from 2011 to 2017 and the data are collected from the announcements of China Securities Regulatory Commission. The findings are as follows: punishment announcements by regulatory authorities increase the cost of debt; and (...) the effect of punishment announcements on the cost of debt is partially offset by prior CSR performance. These findings are shown to be robust. The reputation insurance effect of CSR is more pronounced in state-owned enterprises and in an institutional environment with low marketization, a weak legal environment, and low information transparency. The findings support the reputation insurance hypothesis of CSR and employ the cost of debt as a governance mechanism. (shrink)

Experiments are not models of cooperation; instead, they demonstrate the presence of the ethical and other-regarding predispositions that often motivate cooperation and the punishment of free-riders. Experimental behavior predicts subjects' cooperation in the field. Ethnographic studies in small-scale societies without formal coercive institutions demonstrate that disciplining defectors is both essential to cooperation and often costly to the punisher.

Hunter-gatherer punishment involves costs and benefits to individuals and groups, but the costs do not necessarily fit with the assumptions made in models that consider punishment to be altruistic – which brings in the free-rider problem and the problem of second-order free-riders. In this commentary, I present foragers' capital punishment patterns ethnographically, in the interest of establishing whether such punishment is likely to be costly; and I suggest that in many cases abstentions from punishment (...) that might be taken as defections by free-riders are actually caused by social-structural considerations rather than being an effect of free-rider genes. This presentation of data supplements the ethnographic analysis provided by Guala. (shrink)

In “Punishment as a Costly Signal of Reform,” Jim Staihar argues that prisons should provide inmates with opportunities to sacrifice in ways that signal their genuine reform to others. I first show why Staihar’s program would be valuable, but only in restricted contexts. I then argue that costly signaling programs will usually be either not sufficiently costly to be taken seriously by the signal’s receivers or not rational for inmates in harsh prison environments to complete. Next, (...) I consider the worry that some inmates will choose to participate in costly signaling programs as mimics, rendering ineffective the signals of truly reformed inmates. What Staihar must say, but does not, is why the non-mimicker’s expected utility gain will be sufficiently higher than the mimicker’s such that only sincere participation is incentivized. I conclude by showing why Staihar’s proposal could nevertheless be a valuable part of a hybrid program of legal punishment. (shrink)

We review evidence of the psychological and social costs associated with punishing. We propose that these psychological and social costs should be considered (in addition to material costs) when searching for evidence of costly punishment.

Numerous studies indicate that racial minorities are both more likely to be executed for murder and that those who murder them are less likely to be executed than if they murder whites. Death penalty opponents have long attempted to use these studies to argue for a moratorium on capital punishment. Whatever the merits of such arguments, they overlook the fact that such discrimination alters the costs of murder; racial discrimination imposes higher costs on minorities for murdering through tougher sentences, (...) and it imposes lower costs on whites for murdering minorities by dispensing weaker sentences. These cost differentials constitute an injustice not simply to actual minority defendants in capital cases, nor simply to the actual minority victims of murder, but to all members of minority communities. I here offer two arguments for a moratorium on capital punishment: The first draws upon evidence of racial discrimination against minority defendants in capital cases, and claims that such discrimination modifies the costs of murder in such a way that minority individuals do not enjoy equal status under the law. The second draws upon the evidence regarding racial discrimination in relation to the race of victims, and claims that such discrimination modifies the costs of murder in such a way that minority individuals do not enjoy the equal protection of the law. Thus, by not assigning equal costs to murder, the American criminal justice system fails to provide racial minorities the equality under the law and discounts the value of their lives and liberties. A moratorium is the least unjust response to such a social injustice. I also reply to the criticism that a moratorium prevents us from executing deserving murderers. (shrink)

In small-scale societies, punishment of adults is infrequent and employed when the anticipated cost-to-benefit ratio is low, such as when punishment is collectively justified and administered. In addition, benefits may exceed costs when punishers have relatively greater physical and social capital and gain more from cooperation. We provide examples from the Tsimane horticulturalists of Bolivia to support our claims.

Lab experiments on punishment are of limited relevance for understanding cooperative behavior in the real world. In real interactions, punishment is not cheap, but the costs of punishment are of a different nature than in experiments. They do not correspond to direct payments or payoff deductions, but they arise from the repercussions punishment has on social networks and future interactions.

Guala notes that low-cost punishment is the main mechanism that deters free-riding in small human communities. This mechanism is complemented by unusual human vulnerability to gossip. Defenders of an evolutionary discontinuity supporting human sociality might seize on this as an alternative to enjoyment of moralistic aggression as a special adaptation. However, the more basic adaptation of language likely suffices.

The spreading of reputational information about group members through gossip represents a widespread, efficient, and low-cost form of punishment. Research shows that negative arousal states motivate individuals to gossip about the transgressions of group members. By sharing information in this way groups are better able to promote cooperation and maintain social control and order.

Punitive behaviours are often assumed to be the result of an instinct for punishment. This instinct would have evolved to punish wrongdoers and it would be the evidence that cooperation has evolved by group selection. Here, I propose an alternative theory according to which punishment is a not an adaptation and that there was no specific selective pressure to inflict costs on wrongdoers in the ancestral environment. In this theory, cooperation evolved through partner choice for mutual advantage. In (...) the ancestral environment, individuals were in competition to be recruited in cooperative ventures and it was vital to share the benefits of cooperation in a mutually advantageous manner. If individuals took a bigger share of the benefits, their partners would leave them for more interesting partners. If they took a smaller share, they would be exploited by their partners who would receive more than what they had contributed to produce. This competition led to the selection of a sense of fairness, a cognitive adaptation aiming to share equally the benefits of cooperation in order to attract partners. In this theory, punishment is not necessary for the evolution of cooperation. Punitive behaviours are only a way to restore fairness by compensating the victim or penalizing the culprit. Drawing on behavioural economics, legal anthropology, and cognitive psychology, I show that empirical data fit better with this framework than with the theory of group selection. When people punish, they do so to restore fairness rather than to help the group. (shrink)

‘Altruistic punishment’ (i.e., costly punishment that serves no instrumental goal for the punisher) could serve, as suggested by the pertinent experimental literature, as a powerful enforcer of social norms. This paper discusses foundations, extensions, and, in particular, limits and open questions of this concept-and it does so mostly based on experimental evidence provided by the author. Inter alia, the paper relates the (standard) literature on negative emotions as a trigger of second party punishment to more recent (...) experimental findings on the phenomenon of ‘spontaneous cooperation’ and ‘spontaneous punishment’ and demonstrates its (tight) emotional basis. Furthermore, the paper discusses the potential for free riding on altruistic punishment. While providing valuable insights into the understanding of social order, ‘altruistic punishment’ is thus not the golden keystone of social stability. (shrink)

Collective action, or the large-scale cooperation in the pursuit of public goods, has been suggested to have evolved through cultural group selection. Previous research suggests that the costly punishment of group members who do not contribute to public goods plays an important role in the resolution of collective action dilemmas. If large-scale cooperation sustained by the punishment of defectors has evolved through the mechanism of cultural group selection, two implications regarding costly punishment follow: (1) that (...) people are more willing to punish defecting group members in a situation of intergroup competition than in a single-group social dilemma game and (2) that levels of “perverse” punishment of cooperators are not affected by intergroup competition. We find confirmation for these hypotheses. However, we find that the effect of intergroup competition on the punishment of defectors is fully explained by the stronger conditionality of punishment on expected punishment levels in the competition condition. (shrink)

Understanding cooperation and punishment in small-scale societies is crucial for explaining the origins of human cooperation. We studied warfare among the Turkana, a politically uncentralized, egalitarian, nomadic pastoral society in East Africa. Based on a representative sample of 88 recent raids, we show that the Turkana sustain costly cooperation in combat at a remarkably large scale, at least in part, through punishment of free-riders. Raiding parties comprised several hundred warriors and participants are not kin or day-to-day interactants. (...) Warriors incur substantial risk of death and produce collective benefits. Cowardice and desertions occur. (shrink)

Game experiments designed to test the effectiveness of reward and/or punishment incentives in promoting cooperative behavior among their participants are quite common. Results from two such recent experiments conducted in Beijing, based on the Prisoner’s Dilemma (PD) game and Public Goods Game respectively, are summarized here. The unexpected empirical outcomes for the repeated PD game, that cooperation actually decreased when the participants had the option of using a costly punishment strategy and that participants who used costly (...) punishment in some round of the repeated game often did so in the first round, are discussed in terms of differences in attitudes toward reputation in Chinese culture compared to other locations (mostly in Western society) where similar experiments have been conducted. The second experiment models an institution providing incentives to increase contribution levels (i.e., cooperation) to the public good. The results show that combined institutional reward and punishment is the most effective means to increase cooperation, followed by a scheme using only punishment. It is shown how these empirical results are related to the theoretical predictions that assume players play rationally by optimizing their personal payoff given their opponents’ actions in these multi-player games. (shrink)

Whether causing flash crashes in financial markets, purchasing illegal drugs, or running over pedestrians, AI is increasingly engaging in activity that would be criminal for a natural person, or even an artificial person like a corporation. We argue that criminal law falls short in cases where an AI causes certain types of harm and there are no practically or legally identifiable upstream criminal actors. This Article explores potential solutions to this problem, focusing on holding AI directly criminally liable where it (...) is acting autonomously and irreducibly. Conventional wisdom holds that punishing AI is incongruous with basic criminal law principles such as the capacity for culpability and the requirement of a guilty mind. -/- Drawing on analogies to corporate and strict criminal liability, as well as familiar imputation principles, we show how a coherent theoretical case can be constructed for AI punishment. AI punishment could result in general deterrence and expressive benefits, and it need not run afoul of negative limitations such as punishing in excess of culpability. Ultimately, however, punishing AI is not justified, because it might entail significant costs and it would certainly require radical legal changes. Modest changes to existing criminal laws that target persons, together with potentially expanded civil liability, are a better solution to AI crime. (shrink)

In the past decade, experiments on altruistic punishment have played a central role in the study of the evolution of cooperation. By showing that people are ready to incur a cost to punish cheaters and that punishment help to stabilise cooperation, these experiments have greatly contributed to the rise of group selection theory. However, despite its experimental robustness, it is not clear whether altruistic punishment really exists. Here, I review the anthropological literature and show that hunter-gatherers rarely (...) punish cheaters. Instead, they avoid dealing with them and switch to other partners. I suggest that these data are better explained by individual selection, and in particular by partner choice models, in which individuals are in competition to be recruited by cooperative partners. I discuss two apparent problems for partner choice theories: large-scale cooperation and punishments in economic games. I suggest that rather than favouring group selection theory, these two phenomena provide evidence in favour of individual selection: (1) people produce large-scale cooperation through institutions in which punishment is not altruistic but rewarded on an individual basis; (2) punishment in experimental games can be explained without altruism and is indeed often better explained by individual interests. (shrink)

Cooperation for the public good is vulnerable to exploitation by free-riders because it always pays individuals to exploit the social contract for their own benefit. This problem can be resolved if free-riders are punished, but punishment is itself a public good subject to free-riding. The fear of supernatural punishment hypothesis (FSPH) proposes that belief in supernatural punishment might offer a solution to this problem by deflecting the cost of punishment onto supernatural forces and thereby incentivizing cooperation. (...) FSPH is supported empirically by ethnographic data, but this work has so far focused on (1) institutional cooperative traits which may not reflect individual choices on how to behave in everyday social interactions and (2) threat of punishment from all-powerful moralizing high gods rather than other agents capable of supernatural punishment. Here, we consider the FSPH using variables which are linked to individual interaction and expand the number of variables measuring belief in different forms of supernatural punishment. Our findings do not fit these more general FSPH predictions. We suggest there may be something special about the link between moralizing high gods and institutional enforcement of cooperation that is not captured by these other variables. (shrink)

Using a laboratory experiment, we examine whether voluntary sanctions induce subjects to coordinate more efficiently in a repeated minimum-effort game. While most groups first experience Pareto inferior coordination in a baseline treatment, the level of effort increases substantially once ex post sanctioning opportunities are introduced, that is, when one can assign costly punishment points to other group members to reduce their payoffs. We compare the effect of this voluntary punishment possibility with the effect of ex post costless (...) communication, which in contrast to the punishment treatment increases efforts only temporarily and fails to bring the players to higher payoff equilibria permanently. Our results indicate that decentralized sanctions can play an important role as a coordination device in Pareto-ranked coordination settings. They also suggest that the motivations behind voluntary sanctions may be more general than usually put forth in the literature on cooperation games. (shrink)

Civil disobedience, despite its illegal nature, can sometimes be justified vis-à-vis the duty to obey the law, and, arguably, is thereby not liable to legal punishment. However, adhering to the demands of justice and refraining from punishing justified civil disobedience may lead to a highly problematic theoretical consequence: the debilitation of civil disobedience. This is because, according to the novel analysis I propose, civil disobedience primarily functions as a costly social signal. It is effective by being reliable, reliable (...) by being costly, and costly primarily by being punished. My analysis will highlight a distinctive feature of civil disobedience: civil disobedients leverage the punitive injustice they suffer to amplify their communicative force. This will lead to two paradoxical implications. First, the instability of the moral status of both civil disobedience and its punishment to the extent where the state may be left with no permissible course of action with regard to punishing civil disobedience. Second, by refraining from punishing justified civil disobedience, the state may render uncivil disobedience—illegal political activities that fall short of the standards of civil disobedience—potentially permissible. (shrink)

@FP=Punishment in the contemporary United States is a massive and costly enterprise. As of 2001, approximately 5.6 million living adult residents of the United States had served time in a federal or state prison. In that same year, federal, state, and local governments in the United States spent $57 billion punishing these individuals, which does not include $72 billion to provide police protections and $38 billion to maintain the court system. An American resident is more than eight times (...) more likely to be incarcerated than a German resident and nearly nineteen times more likely than a Japanese resident. Despite the fact that our incarceration rates are so disproportionately high when compared to rates of other wealthy democracies, we suffer far more violent crime per capita than similar nations. In 2001, the reported offense rate per 100,000 for homicide in the United States was 5.6 while in Germany the rate was 3.23. For rape, the numbers are more disproportionate, with 31.8 in the U.S. compared with 10.45 in Germany. The comparison with Japan is still more dramatic, with Japanese homicide rates at 1.10 and rape rates at 1.85 per 100,000. The United States invests more in punishment than any other nation–both in terms of financial expenditure and the loss of freedom for millions of convicts–yet this price does not appear to result in a safer society. Given this, we must ask fundamental questions regarding punishment: What justifies punishment? What are the objectives of punishment? How should we accomplish those objectives? How important are those objectives when compared with other objectives, such as personal liberty? Imagine, for example, that we retained all of our current laws but one punishment applied for violating any of them: regardless of whether you were convicted of murder or exceeding the speed limit, you would be executed. Surely we could all be more confident that such a threat would reduce criminal activity, but with this security would come the anxiety that you or a loved one would be killed for committing a minor offense.. (shrink)

In this paper I consider arguments advanced by supporters of corporal punishment and argue that they have failed to show that this practice is justified on either consequentialist or retributivist grounds. Not only are there alternative punishments that bring about as much (if not more) benefit at a lower cost, but corporal punishment poses a risk of psychological harm to children and violates children’s rights. I conclude that corporal punishment is morally impermissible and that it ought to (...) be criminalized. (shrink)

Two recent overviews of costly signalling theory—Maynard-Smith and Harper ( 2003 ) and Searcy and Nowicki ( 2005 )—both refuse to count signals kept honest by punishment of dishonesty, as costly signals, because (1) honest signals must be costly in cases of costly signalling, and (2) punishment of dishonesty itself requires explanation. I argue that both pairs of researchers are mistaken: (2) is not a reason to discount signals kept honest by punishment of (...) dishonesty as cases of costly signalling, and (1) betrays too narrow a focus on certain versions of costly signalling theory. In the course of so arguing, I propose a new schema for classifying signal costs, which suggests productive research questions for future conceptual and empirical work on costly signalling. (shrink)

Many researchers have assumed that punishment evolved as a behavior-modification strategy, i.e. that it evolved because of the benefits resulting from the punishees modifying their behavior. In this article, however, we describe two alternative mechanisms for the evolution of punishment: punishment as a loss-cutting strategy (punishers avoid further exploitation by punishees) and punishment as a cost-imposing strategy (punishers impair the violator’s capacity to harm the punisher or its genetic relatives). Through reviewing many examples of punishment (...) in a wide range of taxa, we show that punishment is common among plant and animal species and that the two mechanisms we describe have often been important for the evolution of punishment. (shrink)

A large proportion of the population thinks that capital punishment is a reasonable method to reduce crime and punish those who have been convicted of a capital crime. I discuss aspects to the philosophy of capital punishment, and analyze factual elements of murder conviction processes, to significantly cast doubt on the pro-capital punishment argument. In order to measure the true value and need for capital punishment, one must analyze pro capital punishment arguments in light of (...) the alternatives. While theories of deterrence, incapacitation and retribution will be reviewed, theories of rehabilitation and restoration will not since they are not applicable to the capital punishment discussion. With increased legal protections, which are a good thing, and rising costs of incarceration, capital punishment is not the greatest good punishment option for capital crime. The remaining options are revising the capital punishment system, an enormous challenge, or suspending it indefinitely. (shrink)

Guala raises important questions about the misinterpretation of experimental studies that have found that subjects engage in costly punishment. Instead of positing that punishment is the solution for social dilemmas, earlier research posited that when individuals facing a social dilemma agreed on their own rules and used graduated sanctions, they were more likely to have robust solutions over time.

Evolutionists studying human cooperation disagree about how to best explain it. One view is that humans are predisposed to engage in costly cooperation and punishment of free-riders as a result of culture/gene coevolution via group selection. Alternatively, some researchers argue that context-specific cognitive mechanisms associated with traditional neo-Darwinian self- and kin-maximization models sufficiently explain all aspects of human cooperation and punishment. There has been a great deal of research testing predictions derived from both positions; still, researchers generally (...) agree that more naturalistic data are needed to complement mathematical modeling and laboratory and field experiments. Most of these data have been obtained from small-scale forager and other societies, but modern intentional communities offer another productive source of information. This exploratory study describes context-specific patterns of punishment in 46 American intentional communities that cast doubt on the prediction that people are predisposed to punish free-riders in naturalistic interactions. (shrink)

Economists and biologists have proposed a distinction between two mechanisms – “strong” and “weak” reciprocity – that may explain the evolution of human sociality. Weak reciprocity theorists emphasize the benefits of long-term cooperation and the use of low-cost strategies to deter free-riders. Strong reciprocity theorists, in contrast, claim that cooperation in social dilemma games can be sustained by costly punishment mechanisms, even in one-shot and finitely repeated games. To support this claim, they have generated a large body of (...) evidence concerning the willingness of experimental subjects to punish uncooperative free-riders at a cost to themselves. In this article, I distinguish between a “narrow” and a “wide” reading of the experimental evidence. Under the narrow reading, punishment experiments are just useful devices to measure psychological propensities in controlled laboratory conditions. Under the wide reading, they replicate a mechanism that supports cooperation also in “real-world” situations outside the laboratory. I argue that the wide interpretation must be tested using a combination of laboratory data and evidence about cooperation “in the wild.” In spite of some often-repeated claims, there is no evidence that cooperation in the small egalitarian societies studied by anthropologists is enforced by means of costly punishment. Moreover, studies by economic and social historians show that social dilemmas in the wild are typically solved by institutions that coordinate punishment, reduce its cost, and extend the horizon of cooperation. The lack of field evidence for costly punishment suggests important constraints about what forms of cooperation can or cannot be sustained by means of decentralised policing. (shrink)

Third-party punishment (TPP) has been shown to be an effective mechanism for maintaining human cooperation. However, it is puzzling how third-party punishment can be maintained, as punishers take on personal costs to punish defectors. Although there is evidence that punishers are preferred as partners because third-party punishment is regarded by bystanders as a costly signal of trustworthiness, other studies show that this signaling value of punishment can be severely attenuated because third-party helping is viewed as (...) a stronger signal of trustworthiness than third-party punishment. Third-party helpers donate their payoffs to victims of defection in games instead of punishing defectors as third-party punishers do. Then, under what circumstances can third-party punishment be maintained by costly signaling when helping is also present? We show that punishers are preferred over helpers by fourth-party individuals as their delegates to deter potential exploitation. This suggests that costly signaling can facilitate the maintenance of third-party punishment in partner choice with delegation interactions. (shrink)

Guala argues that there is a mismatch between most laboratory experiments on costly punishment and behavior in the field. In the lab, experimental designs typically suppress retaliation. The same is true for most theoretical models of the co-evolution of costly punishment and cooperation, which a priori exclude the possibility of defectors punishing cooperators.

This paper argues that there is a default presumption that punishment has some deterrent effect, and that the burden of proof is upon those who allege that the costs of any particular penal system are insufficient to offset its deterrent benefits. This burden of proof transmits to the discussion of international law, with the conclusion that it is those who oppose international jurisdiction, rather than their opponents, who must prove their position. This they have so far failed to do.

Recent investigations have uncovered large, consistent deviations from the predictions of the textbook representation of Homo economicus (Roth et al, 1992, Fehr and Gächter, 2000, Camerer 2001). One problem appears to lie in economists’ canonical assumption that individuals are entirely self-interested: in addition to their own material payoffs, many experimental subjects appear to care about fairness and reciprocity, are willing to change the distribution of material outcomes at personal cost, and reward those who act in a cooperative manner while punishing (...) those who do not even when these actions are costly to the individual. These deviations from what we will term the canonical model have important consequences for a wide range of economic phenomena, including the optimal design of institutions and contracts, the allocation of property rights, the conditions for successful collective action, the analysis of incomplete contracts, and the persistence of noncompetitive wage premia. Fundamental questions remain unanswered. Are the deviations from the canonical model evidence of universal patterns of behavior, or do the individual’s economic and social environments shape behavior? If the latter, which economic and social conditions are involved? Is reciprocal behavior better explained statistically by individuals’ attributes such as their sex, age, or relative wealth, or by the attributes of the group to which the individuals belong? Are there cultures that approximate the canonical account of self-regarding behavior? Existing research cannot answer such questions because virtually all subjects have been university students, and while there are cultural differences among student populations throughout the world, these differences are small compared to the range of all social and cultural environments. To address the above questions, we and our collaborators undertook a large cross-cultural study of behavior in ultimatum, public good, and dictator games.. (shrink)

Cooperation towards public goods relies on credible threats of punishment to deter cheats. However, punishing is costly, so it remains unclear who incurred the costs of enforcement in our evolutionary past. Theoretical work suggests that human cooperation may be promoted if people believe in supernatural punishment for moral transgressions. This theory is supported by new work in cognitive psychology and by anecdotal ethnographic evidence, but formal quantitative tests remain to be done. Using data from 186 societies around (...) the globe, I test whether the likelihood of supernatural punishment—indexed by the importance of moralizing “high gods”—is associated with cooperation. (shrink)

Does the desirability of social institutions for public goods provision depend on the extent to which they include mechanisms for endogenous enforcement of cooperative behavior? We consider alternative institutions that vary the use of direct punishments to promote social cooperation. In one institution, subjects participate in a public goods experiment in which an initial stage of voluntary contribution is followed by a second stage of voluntary, costly sanctioning. Another institution consists of the voluntary contribution stage only, with no subsequent (...) opportunity to sanction. In a third stage subjects vote for which institution they prefer for future interactions: do they prefer one that does allow sanctions or one that does not allow sanctions? Our results show that even though sanctions are frequently used when available, the clear majority of individuals vote for the institution that does not allow sanctions. Thus, a distinction is required between the principles that guide the choice of institutions and the principles that apply to actions guided by institutions. Our results indicate that it is the wealth generated by the institution that determines its desirability. (shrink)

Economists and biologists have proposed a distinction between two mechanisms – “strong” and “weak” reciprocity – that may explain the evolution of human sociality. Weak reciprocity theorists emphasize the benefits of long-term cooperation and the use of low-cost strategies to deter free-riders. Strong reciprocity theorists, in contrast, claim that cooperation in social dilemma games can be sustained by costly punishment mechanisms, even in one-shot and finitely repeated games. To support this claim, they have generated a large body of (...) evidence concerning the willingness of experimental subjects to punish uncooperative free-riders at a cost to themselves. In this article, I distinguish between a “narrow” and a “wide” reading of the experimental evidence. Under the narrow reading, punishment experiments are just useful devices to measure psychological propensities in controlled laboratory conditions. Under the wide reading, they replicate a mechanism that supports cooperation also in “real-world” situations outside the laboratory. I argue that the wide interpretation must be tested using a combination of laboratory data and evidence about cooperation “in the wild.” In spite of some often-repeated claims, there is no evidence that cooperation in the small egalitarian societies studied by anthropologists is enforced by means of costly punishment. Moreover, studies by economic and social historians show that social dilemmas in the wild are typically solved by institutions that coordinate punishment, reduce its cost, and extend the horizon of cooperation. The lack of field evidence for costly punishment suggests important constraints about what forms of cooperation can or cannot be sustained by means of decentralised policing. (shrink)

In explaining the emergence of conventions surrounding human cooperation and helping of those in need, it seems as though honest communication of need is an essential part of the story. While previous results indicate that punishment promotes cooperation, this paper will argue that the story is more complicated. Namely, whether punishment promotes cooperation depends on what you punish. Punishment of those who lie about their need for a resource may instead impede cooperation, as the attempts to deceive (...) that arise in cooperative endeavors may be too costly to make cooperation worthwhile. (shrink)

This article analyzes the relationship between corporate social responsibility (CSR) decoupling and financial market outcomes. CSR decoupling refers to the gap between CSR disclosure and CSR performance. More specifically, we analyze the effect of CSR decoupling on analysts’ forecast errors, cost of capital, and access to finance. We also examine the moderating effect of forecast errors on relationships between CSR decoupling and cost of capital and access to finance. For a sample of U.S. firms consisting of 7,681 firm-year observations for (...) the period 2006–2015, our empirical evidence supports the idea that a wider gap results in higher analysts’ forecast errors, a greater cost of capital, and reduced access to finance. In addition, our results show that forecast errors enhance the effect of the CSR decoupling on cost of capital and access to financial resources. We also note that external monitoring, in the form of greater analysts’ coverage, reduces CSR decoupling. (shrink)

The claims about (1) the lack of empirical support for a model of strong reciprocation and (2) the irrelevant empirical role of costly punishment to support cooperation in the field need qualifications. The interpretation of field evidence is not straightforward, and other-regarding preferences are also likely to play a role in the field.

HIV/AIDS strikes with the greatest frequency in sub-Saharan Africa, a region lacking resources to deal with this epidemic. To keep millions more people from dying, wealthy countries must provide more help. Yet deeply ingrained biases may distance the sick from those who could provide far more aid. One such prejudice is viewing disease as punishment for sin. This 'punishment theory of disease" ascribes moral blame to those who get sick or those with special relations to them. Religious versions (...) hold that God punishes them in order to castigate, encourage virtue, warn, rehabilitate, or maintain some cosmic order. Its various religious and secular forms are untenable; they lack cogency, risk blaming people unjustly, and jeopardize compassionate care for people. These views are not only irrational but also dangerous because they influence policies and cost lives. We need to cooperate and respond as befits this global public-health disaster and not engage in the misguided and bad faith activity of dividing the world into the blameworthy and blameless. (shrink)

The standard theories of cooperation in humans, which depend on repeated interaction and reputation effects among self-regarding agents, are inadequate. Strong reciprocity, a predisposition to participate in costly cooperation and the punishment, fosters cooperation where self-regarding behaviors fail. The effectiveness of socially coordinated punishment depends on individual motivations to participate, which are based on strong reciprocity motives. The relative infrequency of high-cost punishment is a result of the ubiquity of strong reciprocity, not its absence.

Over the last 20 years, sex offender policies, specifically in terms of community corrections, have increased in scope. One of the most controversial and pervasive sex offender policies is that of registration. In response to the consumption of already limited resources, jurisdictions have imposed increasingly higher community supervision fees onto the offenders, requiring them to pay for their own re-entry. However, to date no research study has examined the statutory language associated with registration fees collected post release from formal community (...) sanctions. Using a statutory analysis within the United States, this research finds and quantifies the imposition of a registration fee on offenders who are legally compelled to pay these registration costs, regardless of whether they are still currently under community supervision. Results show that more than half of U.S. states (n = 28) incorporate statutory language authorizing registration fees, ranging anywhere from $5 per registration to up to $250 per year. These findings, as well as suggestions for future research and policy recommendations, are discussed. (shrink)

The evolution and maintenance of cooperation in human and animal societies challenge various disciplines ranging from evolutionary biology to anthropology, social sciences, and economics. In social interactions, cooperators increase the welfare of the group at some cost to themselves whereas defectors attempt to free ride and neither provide benefits nor incur costs. The problem of cooperation becomes even more pronounced when increasing the number of interacting individuals. Punishment and voluntary participation have been identified as possible factors to support cooperation (...) and prevent cheating. Typically, punishment behavior is unable to gain a foothold in a population, while volunteering alone can efficiently prevent deadlocks in states of mutual defection but is unable to stabilize cooperation. The combined effects of the two mechanisms have surprisingly different consequences in finite and infinite populations. Here we provide a detailed comparison of the two scenarios and demonstrate that driven by the inherent stochasticity of finite populations, the possibility to abstain from social interactions plays a pivotal role, which paves the way for the establishment of cooperation and punishment. (shrink)