Weighing Reward and Punishment—Response
Baron argues that infrequent punishments are more cost efficient than infrequent rewards. But our experiment does not represent a situation of intermittent rewarding. Instead, we have shown that contributions to the public good can be maintained by linking the public goods game to cooperative, wealth-producing pairwise interactions. Low contributors are denied cooperation in pairwise interactions, while high contributors are rewarded. Due to the ubiquity of such opportunities for targeted interaction, there is no need for costly peer punishment to enforce cooperation. Full cooperation in both the public and pairwise interactions leads to the best possible payoff. Thus, adding punishment cannot result in better outcomes.Read more at www.sciencemag.org

