Arbeitspapier

Norms, Emotions, and Culture in Human Cooperation and Punishment: Theory and Evidence

We consider the psychological and social foundations of human contributions and punishments in a voluntary contributions mechanism with punishment (VCMP). We eliminate 'dynamic economic linkages' between the two stages of our 'modified' VCMP to rule out other potential explanations. We use a beliefs-based model, rooted in psychological game theory, to derive rigorous theoretical predictions that are then tested with pre-registered experiments in China and the UK. Social norms, culture, and endogenous emotions are the key determinants of contributions and punishments. The emotions of shame, frustration, and anger, play a key role in our theoretical and empirical analysis through 'dynamic psychological linkages'. We provide potential microfoundations for the inherent human tendency to follow social norms and punish norm violators, while respecting boundedly rational strategic decision making.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 10220

Classification
Wirtschaft
Design of Experiments: Laboratory, Individual
Design of Experiments: Laboratory, Group Behavior
Microeconomic Behavior: Underlying Principles
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Subject
cooperation and punishment
emotions-shame
frustration
anger
social norms
culture
bounded rationality

Event
Geistige Schöpfung
(who)
Dhami, Sanjit
Wei, Mengxing
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2023

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Dhami, Sanjit
  • Wei, Mengxing
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2023

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