The whip and the Bible: Punishment versus internalization

• DOI: 10.1111/jpet.12540
• Publication Date: 2021-08-27T15:36:00Z
• Authors: Rohan Dutta; David K. Levine; Salvatore Modica
• Keywords: Prosocial Behavior; Internalization; Punishment (psychology); Investment; Sample (material); Reciprocity; Value (mathematics)

Abstract A variety of experimental and empirical research indicate that prosocial behavior is important for economic success. There are two sources behavior: incentives preferences. The latter, the willingness individuals to “do their bit” group, we refer as internalization, because view it something a group can influence by appropriate investment. This implies there trade‐off between using internalization encourage behavior. By examining this shed light on connection social norms observed inside laboratory those outside in field. For example, show higher value cooperation may lower use even increases usage outside. As an application model calibrated data makes reasonable out‐of‐sample quantitative forecasts.