Experimental study shows punishment mechanisms enhance contributions in public good games, suggesting improved welfare.
This study employs laboratory experiments to investigate whether punishment mechanisms enhance contributions and mitigate the free-rider problem in sequential public good games. The findings indicate that both peer-to-peer and hired-gun punishment significantly increase individual contributions, irrespective of contribution order. Moreover, hired-gun punishment alleviates free riding by later contributors on earlier contributors and results in higher welfare level.
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Hui‐Chun Peng (2026) studied this question.
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