Cooperation and Punishment: The Individual-Level Perspective

We explore the relationship between individuals’ disposition to cooperate and their inclination to engage in peer punishment as well as their relative importance for mitigating social dilemmas. Using a novel strategy-method approach we identify individual punishment patterns and link them with individual cooperation patterns. Classifying N = 628 subjects along these two dimensions documents that cooperation and punishment patterns are intuitively aligned for most individuals. However, the data also reveal a sizable share of free-riders that punish pro-socially and conditional cooperators that do not engage in punishment. Analyzing the interplay between types in an additional experiment, we show that pro-social punishers are more crucial for achieving cooperation than conditional cooperators. Incorporating information on punishment types explains large amounts of the between and within group variation in cooperation.