Third-party punishment renders defection in a one-shot dyadic exchange unprofitable.

Evidence

The numbers in Tables 5 and 6 imply that defection was not profitable for the defector in the SP condition: the defector’s average income was reduced by 38.4 = 25.2 points, whereas the gain from defection was only 10, generating a net loss of 15.2 points. Therefore, cooperation was the better choice from a purely monetary viewpoint. — Ernst Fehr, Third-Party Punishment and Social Norms, 117

Categorization

  • XREF: Supports the reader’s image-scoring framework: a community with a visible reputation scaffold (Hester’s scar) can police one-shot interactions where direct retaliation is impossible—the exact condition under which third-party enforcement matters. — connects to: Third-party punishment games enable empirical study of social norms. — Ernst Fehr, Third-Party Punishment and Social Norms, 2; Third-party punishment is weaker than second-party punishment. — Ernst Fehr, Third-Party Punishment and Social Norms, 82; Cooperation norms persist through credible punishment of defectors. — Lisa Bernestein, Opting out of the Legal System, 193 (+4 more)

Broader Connections