AbstractsLaw & Legal Studies

The Effect of Punishing 'Over-Contributors'� on Overall Welfare: Some Experimental Evidence

by Zachary Biesanz

Institution: University of Minnesota
Year: 2015
Keywords: behavioral game theory; corporate governance; corporate social responsibility; experimental economics; game theory; public goods
Posted: 02/05/2017
Record ID: 2067133
Full text PDF: http://hdl.handle.net/11299/174742


A public goods environment was constructed to simulate a dilemma in which corporate managers choose between acts of corporate social responsibility and acts of profitability. An experiment was conducted to determine the effect of a penalty for contributing above a specific level. The penalty has significant effects, encouraging free riding and suppressing contributions at all levels, even though most contributions would not have triggered the penalty.