Antisocial behavior Antisocial punishment (cid:131) Pervasiveness across societies (cid:131) Conflict and rent seeking (cid:131) The darker side of cooperation (cid:131) Homo rivalis (cid:131) Conflict and peace (cid:131) The dark side of human behavior (cid:131) Punitive games (cid:131) Experimental Economics - Ernesto Reuben Antisocial punishment Differences in punishment behavior (cid:131) Gächter & Herrmann 2007 Design (cid:131) • VCM: n = 3, e = 20, MPCR = 0.5, one-shot game, costs 1 to damage by 3, run in Switzerland and Russia 8 Switzerland P Russia Expected Actual =RUS N n12 =SWI o 6 i t t u n b e i m r t n h o s 4 c ni e u g 8 p a n r e a v e 2 A M 0 4 [-20,-2) [-2,2] (2,20] [-20,-2) [-2,2] (2,20] Experimental Economics - Ernesto Reuben Deviation from others' mean contribution Antisocial punishment Antisocial punishment across societies (cid:131) Herrmann et al. 2008 Is punishment used and does it increase contributions in other (cid:131) societies? Design (cid:131) VCM: n = 3, e = 20, MPCR = 0.5, partners matching, costs 1 to (cid:131) damage by 3 Treatments: punishment / no punishment (cid:131) Run in various cities (cid:131) • Boston, Nottingham, Copenhagen, Bonn, Zurich, St. Gallen, Minsk, Dnipropetrovs'k, Samara, Athens, Istanbul, Riyadh, Muscat, Seoul, Chengdu, Melbourne Experimental Economics - Ernesto Reuben Punishment across societies Antisocial punishment across societies (cid:131) Herrmann et al. 2008 Punishment is pervasive but it does not always increase contributions (cid:131) • Works: Boston, Nottingham, Copenhagen, Bonn, Zurich, St. Gallen, Minsk, Seoul, Chengdu, Melbourne • Did not work: Dnipropetrovs'k, Samara, Athens, Istanbul, Riyadh, Muscat Experimental Economics - Ernesto Reuben Punishment across societies Antisocial punishment across societies (cid:131) Herrmann et al. 2008 Failure of punishment is (cid:131) related to the amount of ‘antisocial’ punishment Punishment of (above (cid:131) average) cooperators If punished, cooperators (cid:131) tend to reduce contributions Why antisocial punishment? (cid:131) • Revenge? • Spitefulness? Experimental Economics - Ernesto Reuben Rent-seeking games Rent-seeking game (cid:131) Two (or more) parties compete for an exogenous prize P (cid:131) Both parties simultaneously exert effort e to try to win the prize (cid:131) i Each party wins with a probability proportional to its effort share (cid:131) e Prob(i wins) = i e + e i j The (symmetric) equilibrium effort is: e = e = ¼P (cid:131) i j The expected payoff is y – ¼P + ½P = y + ¼P (cid:131) i i Rent-seeking model is used to analyze (cid:131) Contests (e.g. architecture), promotion tournaments, lobbying, war and (cid:131) interstate conflict, charitable fundraising Experimental Economics - Ernesto Reuben Rent-seeking games The dark side of cooperation (cid:131) Abbink et al. 2009 Design (cid:131) Rent-seeking contest in teams or individuals (cid:131) • Endowment per individual is 1000 tokens • Price per individual is 1000 tokens • Repeated for 20 periods, partners matching Treatments (cid:131) • 1 vs. 1 • 4 vs. 1 • 4 vs. 4 • 4. vs 4 with punishment within teams Experimental Economics - Ernesto Reuben Rent-seeking games The dark side of cooperation (cid:131) Abbink et al. 2009 Both teams and individuals spends more effort than Nash (cid:131) Teams spend much more than individuals (remember individual marginal (cid:131) incentives are the same) Experimental Economics - Ernesto Reuben Rent-seeking games The dark side of cooperation (cid:131) Abbink et al. 2009 With punishment effort levels are even higher! (cid:131) • Is this due to the will of a few aggressive individuals or a team effort? Experimental Economics - Ernesto Reuben Homo rivalis? Rent-seeking and antisocial preferences (cid:131) Herrmann & Orzen 2008 Design (cid:131) Rent-seeking contest between two individuals (cid:131) • Endowment per individual is $16 and the price is $16 • One shot game (part 1) + 15-period repeated game (part 2) Treatments (cid:131) • Direct: standard game • Strategy: individuals can condition of the other’s investment • Individual: individuals can condition of the other’s investment but the other is a computer Experimental Economics - Ernesto Reuben
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