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Judicial Error and Cooperation

Authors: Markussen, Thomas; Tyran, Jean-Robert Karl; Putterman, Louis;

Judicial Error and Cooperation

Abstract

Cooperation can be induced by an authority with the power to mete out sanctions for free riders, but law enforcement is prone to error. This paper experimentally analyzes preferences for and consequences of errors in formal sanctions against free riders in a public goods game. With type I errors, even full contributors to the public good may be punished. With type II errors, free riders may go unpunished. We find that judicial error undermines cooperation andthat the effects of type I and II errors are symmetric. To investigate their relative (dis-)like for error, we let subjects choose what type of error to prevent. By use of an incentive-compatible mechanism, we find that subjects prefer type II over type I errors. We find that the strength of this preference is fully in line with a motive to maximize income and does not indicate any additional psychological or fairness bias against type I errors.

Countries
Denmark, Austria
Keywords

ENFORCEMENT, PREFERENCE, 502010 Finanzwissenschaft, UNCERTAINTY, 505016 Legal theory, 505016 Rechtstheorie, Faculty of Social Sciences, Experiment, Type II errors, /dk/atira/pure/core/keywords/FacultyOfSocialSciences, Sanctions, 502045 Behavioural economics, Willingness to pay, PUNISHMENT, UTILITY, 502010 Public finance, PUBLIC-GOODS EXPERIMENTS, PROVISION, Type I errors, Public goods, sanctions, type I errors, type II errors, willingness to pay, VWL, IB, VCEE, REASONABLE DOUBT, Cat2, DETERRENCE, 502045 Verhaltensökonomie, SANCTIONS, Public goods, jel: jel:H41, jel: jel:K4, jel: jel:C92

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    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    21
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Average
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
21
Top 10%
Average
Average
bronze