Third-party Punishment as a Costly Signal of Trustworthiness

Jillian J. Jordan; Moshe  Hoffman; Paul  Bloom; David G. Rand

Article | Nature

Third-party Punishment as a Costly Signal of Trustworthiness

by Jillian J. Jordan, Moshe Hoffman, Paul Bloom and David G. Rand

Abstract

Third-party punishment (TPP), in which unaffected observers punish selfishness, promotes cooperation by deterring defection. But why should individuals choose to bear the costs of punishing? We present a game theoretic model of TPP as a costly signal of trustworthiness. Our model is based on individual differences in the costs and/or benefits of being trustworthy. We argue that individuals for whom trustworthiness is payoff-maximizing will find TPP to be less net costly (for example, because mechanisms that incentivize some individuals to be trustworthy also create benefits for deterring selfishness via TPP). We show that because of this relationship, it can be advantageous for individuals to punish selfishness in order to signal that they are not selfish themselves. We then empirically validate our model using economic game experiments. We show that TPP is indeed a signal of trustworthiness: third-party punishers are trusted more, and actually behave in a more trustworthy way, than non-punishers. Furthermore, as predicted by our model, introducing a more informative signal—the opportunity to help directly—attenuates these signalling effects. When potential punishers have the chance to help, they are less likely to punish, and punishment is perceived as, and actually is, a weaker signal of trustworthiness. Costly helping, in contrast, is a strong and highly used signal even when TPP is also possible. Together, our model and experiments provide a formal reputational account of TPP, and demonstrate how the costs of punishing may be recouped by the long-run benefits of signalling one’s trustworthiness.

Keywords: third-party punishment; trustworthiness; Behavior; Trust; Game Theory;

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Jordan, Jillian J., Moshe Hoffman, Paul Bloom, and David G. Rand. "Third-party Punishment as a Costly Signal of Trustworthiness." Nature 530, no. 7591 (2016): 473–476.

Article | Journal of Personality and Social Psychology

Signaling When Nobody Is Watching: A Reputation Heuristics Account of Outrage and Punishment in One-shot Anonymous Interactions

Jillian J. Jordan and David G. Rand

Moralistic punishment can confer reputation benefits by signaling trustworthiness to observers. However, why do people punish even when nobody is watching? We argue that people often rely on the heuristic that reputation is typically at stake, such that reputation concerns can shape moralistic outrage and punishment even in one-shot anonymous interactions. We then support this account using data from Amazon Mechanical Turk. In anonymous experiments, subjects (total n = 8,440) report more outrage in response to others’ selfishness when they cannot signal their trustworthiness through direct prosociality (sharing with a third party)—such that if the interaction were not anonymous, punishment would have greater signaling value. Furthermore, mediation analyses suggest that sharing opportunities reduce outrage by influencing reputation concerns. Additionally, anonymous experiments measuring costly punishment (total n = 6,076) show the same pattern: subjects punish more when sharing is not possible. Moreover, and importantly, moderation analyses provide some evidence that sharing opportunities do not merely reduce outrage and punishment by inducing empathy toward selfishness or hypocrisy aversion among non-sharers. Finally, we support the specific role of heuristics by investigating individual differences in deliberateness. Less deliberative individuals (who typically rely more on heuristics) are more sensitive to sharing opportunities in our anonymous punishment experiments, but, critically, not in punishment experiments where reputation is at stake (total n = 3,422); and not in our anonymous outrage experiments (where condemning is costless). Together, our results suggest that when nobody is watching, reputation cues nonetheless can shape outrage and—among individuals who rely on heuristics—costly punishment.

Keywords: signaling; Morality; trustworthiness; anger; third-party punishment; Moral Sensibility; Behavior; Trust; Reputation;

Citation:

Jordan, Jillian J., and David G. Rand. "Signaling When Nobody Is Watching: A Reputation Heuristics Account of Outrage and Punishment in One-shot Anonymous Interactions." Journal of Personality and Social Psychology 118, no. 1 (January 2020). View Details

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People often punish norm violations. In what cases is such punishment viewed as normative—a behavior that we “should”or even“must”engage in? We approach this question by asking when people who fail to punish a norm violator are, themselves, punished. (For instance, a boss who fails to punish transgressive employees might,herself, befired.) We conducted experiments exploring the contexts in which higher-order punishment occurs, using both incentivized economic games and hypothetical vignettes describing everyday situations. We presented participants with cases in which an individual fails to punish a transgressor, either as a victim (second party) or as an observer (third party). Across studies, we consistently observed higher-order punishment of non-punishing observers. Higher-order punishment of non-punishing victims, however, was consistently weaker, and sometimes non-existent. These results demonstrate the selective application of higher-order punishment, provide a new perspective on the psychological mechanisms that support it, and provide some clues regarding itsfunction.

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Third-party Punishment as a Costly Signal of Trustworthiness

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