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Establishing Cooperation between Groups: Ingroup versus Outgroup Punishment


Stoff, Christian (2006). Establishing Cooperation between Groups: Ingroup versus Outgroup Punishment. Working paper series / Socioeconomic Institute No. 416, University of Zurich.

Abstract

We analyse interethnic cooperation in an infinitely repeated prisoner’s dilemma when members of one group are unable to target punishment towards individual defectors from the other group. We first show that indiscriminate punishment may sustain cooperation in this setting. Our main result, however, is that the introduction of ingroup punishment in addition to outgroup punishment represents a better sanctioning institution in the sense that cooperative outcomes may persist in situations where outgroup punishment alone fails to induce cooperation. Our findings are consistent with historical evidence on the dynamics of interethnic conflicts.

Abstract

We analyse interethnic cooperation in an infinitely repeated prisoner’s dilemma when members of one group are unable to target punishment towards individual defectors from the other group. We first show that indiscriminate punishment may sustain cooperation in this setting. Our main result, however, is that the introduction of ingroup punishment in addition to outgroup punishment represents a better sanctioning institution in the sense that cooperative outcomes may persist in situations where outgroup punishment alone fails to induce cooperation. Our findings are consistent with historical evidence on the dynamics of interethnic conflicts.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Socioeconomic Institute (former)
Dewey Decimal Classification:330 Economics
JEL Classification:C70, C72, O12, O17, Z13
Language:English
Date:February 2006
Deposited On:29 Nov 2011 22:47
Last Modified:10 Aug 2018 05:43
Series Name:Working paper series / Socioeconomic Institute
OA Status:Green
Official URL:http://www.econ.uzh.ch/wp.html

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