Punishment Cannot Sustain Cooperation in a Public Good Game with Free-Rider Anonymity

Abstract

Individuals often have legitimate but publicly unobservable reasons\nfor not partaking in cooperative social endeavours. This means others\nwho lack legitimate reasons may then have the opportunity to behave\nuncooperatively, i.e. free-ride, and be indistinguishable from those with\nlegitimate reasons. Free-riders have a degree of anonymity. In the context\nof a public good game we consider the e¤ect of free-rider anonymity on\nthe ability of voluntary punishment to sustain cooperative social norms.\nDespite only inducing a weak form of free-rider anonymity, punishment\nfalls and cannot sustain cooperation.