We analyze the effects of ostracism on cooperation in a linear public good experiment with fixed partner design. Our results show that introducing ostracism increases contribution levels significantly except in first and last periods. Despite reductions in group size due to ostracism, the net effect on earnings is positive. This effect is in contrast to most alternative mechanisms aimed at increasing cooperation rates studied in the literature on public good experiments.

We analyze the effects of ostracism on cooperation in a linear public good experiment with fixed partner design. Our results show that introducing ostracism increases contribution levels significantly except in first and last periods. Despite reductions in group size due to ostracism, the net effect on earnings is positive. This effect is in contrast to most alternative mechanisms aimed at increasing cooperation rates studied in the literature on public good experiments.

We experimentally study the effect of asymmetry on cooperation in a 40 period prisoner's dilemma game in fixed partner design. We distinguish between a high and low payoff symmetric prisoner's dilemma and an asymmetric game combined out of both symmetric ones. Asymmetry significantly decreases cooperation, as low-type players are more likely to defect after mutual cooperation while high-type players initiate cooperation more often than the former. Asymmetry also has a significant negative effect on the stability of cooperation rendering long sequences of mutual cooperation extremely rare. JEL-Classifications: C81, D70, C91.

Abstract:This article is a translation of the original German text of Hans Albert's 1963 article titled ‘Modell-Platonismus. Der neoklassische Stil des ökonomischen Denkens in kritischer Beleuchtung’, in F. Karrenberg and H. Albert (eds.), Sozialwissenschaft und Gesellschaftsgestaltung – Festschrift für Gerhard Weisser, Berlin: Duncker und Humblot, 45–76. The enduring relevance of Hans Albert's critique together with an introduction to the author as one of Germanys most distinguished philosophers of science can be found in Arnold and Maier-Rigaud (2012) also in this volume.