The Power of Potential Consequences
In a multi-round experiment where participants can contribute to a collective fund, researchers observe that average contributions remain high when a penalty system is available, even if no participant ever actually uses it to penalize another. In contrast, when no penalty system is available, contributions tend to decline over time. Based on principles of cooperation, explain the psychological mechanism that accounts for the sustained high contributions in the group with the unused penalty system.
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Economics
Economy
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
CORE Econ
Social Science
Empirical Science
Science
Analysis in Bloom's Taxonomy
Cognitive Psychology
Psychology
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The Power of Potential Consequences
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