Pointless vendettas

Authors
Publication date 2009
Series CREED Working Paper Series, 2009
Number of pages 12
Publisher Amsterdam: Faculteit Economie en Bedrijfskunde
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract We introduce the experimental vendetta game. Two groups of four players each interact over ten identical rounds. In each round each player decides whether or not to reduce the payoff of each member of the other group, at an own cost. Reducing payoffs entails no material benefit for either the player or his group and is motivated by nastiness. Over the rounds, however, players can use reductions to avenge earlier transgressions.
Fear of retaliation keeps destruction rates low (13%). The introduction of a symbolic reward, however, trebles the frequency of hostile acts (40%).
Document type Report
Published at http://www1.fee.uva.nl/creed/
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