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Sticks and carrots: Two incentive mechanisms supporting intra-group cooperation

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  • Janus, Thorsten
  • Lim, Jamus Jerome
Abstract
In this note, we introduce two distinct incentive mechanisms that support dynamic intra-group cooperation in the context of prisoner's dilemma payoffs: rewards for cooperating, and punishments for defection, where the rewarding or punishing party may be outside the relationship.

Suggested Citation

  • Janus, Thorsten & Lim, Jamus Jerome, 2009. "Sticks and carrots: Two incentive mechanisms supporting intra-group cooperation," Economics Letters, Elsevier, vol. 102(3), pages 177-180, March.
    • Handle: RePEc:eee:ecolet:v:102:y:2009:i:3:p:177-180
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    3. Panu Poutvaara & Mikael Priks, 2011. "Unemployment and gang crime: can prosperity backfire?," Economics of Governance, Springer, vol. 12(3), pages 259-273, September.

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