Artikel

The signaling value of punishing norm-breakers and rewarding norm-followers

We formally explore the idea that punishment of norm-breakers may be a vehicle for the older generation to teach youngsters about social norms. We show that this signaling role provides sufficient incentives to sustain costly punishing behavior. People punish norm-breakers to pass information about past history to the younger generation. This creates a link between past, present, and future punishment. Information about the past is important for youngsters, because the past shapes the future. Reward-based mechanisms may also work and are welfare superior to punishment-based ones. However, reward-based mechanisms are fragile, since punishment is a more compelling signaling device (in a sense that we make precise).

Language
Englisch

Bibliographic citation
Journal: Games ; ISSN: 2073-4336 ; Volume: 9 ; Year: 2018 ; Issue: 4 ; Pages: 1-32 ; Basel: MDPI

Classification
Wirtschaft
Asymmetric and Private Information; Mechanism Design
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Noncooperative Games
Subject
norms
punishment
reaward
signaling

Event
Geistige Schöpfung
(who)
Adriani, Fabrizio
Sonderegger, Silvia
Event
Veröffentlichung
(who)
MDPI
(where)
Basel
(when)
2018

DOI
doi:10.3390/g9040102
Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Adriani, Fabrizio
  • Sonderegger, Silvia
  • MDPI

Time of origin

  • 2018

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