On the long-run efficacy of punishments and recommendations in a laboratory public goods game

Abstract

We use decision-making experiments with human participants to study cooperation in a laboratory public goods game. Such games pose a conflict between cooperating, which is socially optimal and free-riding, which promotes individual self-interest. Prior research emphasizes the need for de-centralized peer-to-peer punishments as an evolutionarily stable response to the problem of free-riding, especially where interactions occur over long horizons. We show that a simple exhortative message appealing to participants' goodwill can achieve high rates of cooperation in social dilemmas played over many rounds, even in the absence of punishments for free-riding.

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