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Cited by 542

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Choosing the Carrot or the Stick? Endogenous Institutional Choice in Social Dilemma Situations

Open access
SUTTER, MATTHIAS, HAIGNER, STEFAN, KOCHER, MARTIN G.·2010·Review of Economic Studies

Abstract

We analyse an experimental public goods game in which group members can endogenously determine whether they want to supplement a standard voluntary contribution mechanism with the possibility of rewarding or punishing other group members. We find a significantly positive effect of endogenous institutional choice on the level of cooperation in comparison to the same exogenously implemented institutions. This suggests that participation rights enhance cooperation in groups. With endogenous choice, groups typically vote for the reward option, although punishment is even more effective in sustaining high levels of cooperation. Our results are evaluated against the predictions of social preference models.

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Crossref · 10.1111/j.1467-937x.2010.00608.x

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Metadata

Authors
SUTTER, M., HAIGNER, S., & KOCHER, M. G.
Venue
Review of Economic Studies
Published
2010-08-13
Volume
77
Issue
4
Pages
1540-1566
ISSN
0034-6527 (ISSN-L)
OpenAlex
W2100607774
Cited by
542
References
6
FWCI
96.82
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Choosing the Carrot or the Stick? Endogenous Institutional Choice in Social Dilemma Situations. https://app.cochat.ai/papers/10.1111/j.1467-937x.2010.00608.x
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SUTTER, M., HAIGNER, S., & KOCHER, M. G. (2010). Choosing the Carrot or the Stick? Endogenous Institutional Choice in Social Dilemma Situations. Review of Economic Studies. https://doi.org/10.1111/j.1467-937x.2010.00608.x

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.