Gossip Versus Punishment: The Efficiency of Reputation to Promote and Maintain Cooperation

The Enforcement of Moral Boundaries Promotes Cooperation and Prosocial Behavior in Groups

The threat of free-riding makes the marshalling of cooperation from group members a fundamental challenge of social life. Where classical social science theory saw the enforcement of moral boundaries as a critical way by which group members regulate one another’s self-interest and build cooperation, moral judgments have most often been studied as processes internal to individuals. Here we investigate how the interpersonal expression of positive and negative moral judgments encourages cooperation in groups and prosocial behavior between group members. In a laboratory experiment, groups whose members could make moral judgments achieved greater cooperation than groups with no capacity to sanction, levels comparable to those of groups featuring costly material sanctions. In addition, members of moral judgment groups subsequently showed more interpersonal trust, trustworthiness, and generosity than all other groups. These findings extend prior work on peer enforcement, highlighting how the enforcement of moral boundaries offers an efficient solution to cooperation problems and promotes prosocial behavior between group members.

Arbitrary Inequality in Reputation Systems

Trust is an essential condition for exchange. Large societies must substitute the trust traditionally provided through kinship and sanctions in small groups to make exchange possible. The rise of internet-supported reputation systems has been celebrated for providing trust at a global scale, enabling the massive volumes of transactions between distant strangers that are characteristic of modern human societies. Here we problematize an overlooked side-effect of reputation systems: Equally trustworthy individuals may realize highly unequal exchange volumes. We report the results of a laboratory experiment that shows emergent differentiation between ex ante equivalent individuals when information on performance in past exchanges is shared. This arbitrary inequality results from cumulative advantage in the reputation-building process: Random initial distinctions grow as parties of good repute are chosen over those lacking a reputation. We conjecture that reputation systems produce artificial concentration in a wide range of markets and leave superior but untried exchange alternatives unexploited.

Evolution of gossip-based indirect reciprocity on a bipartite network

Cooperation can be supported by indirect reciprocity via reputation. Thanks to gossip, reputations are built and circulated and humans can identify defectors and ostracise them. However, the evolutionary stability of gossip is allegedly undermined by the fact that it is more error-prone that direct observation, whereas ostracism could be ineffective if the partner selection mechanism is not robust. The aim of this work is to investigate the conditions under which the combination of gossip and ostracism might support cooperation in groups of different sizes. We are also interested in exploring the extent to which errors in transmission might undermine the reliability of gossip as a mechanism for identifying defectors. Our results show that a large quantity of gossip is necessary to support cooperation, and that group structure can mitigate the effects of errors in transmission.