DOI: 10.2139/ssrn.1585794
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Kristoffel R. Grechenig, Andreas Nicklisch, Christian Thöni

Abstract: AbstractUnder a great variety of legally relevant circumstances, people have to decide whether or not to cooperate, when they face an incentive to defect. The law sometimes provides people with sanctioning mechanisms to enforce pro-social behavior. Experimental evidence on voluntary public good provision shows that the option to punish others substantially improves cooperation, even if punishment is costly. However, these studies focus on situations where there is no uncertainty about others' behavior. We inv…

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