TY - RPRT AU - Joffily, Mateus AU - Masclet, David AU - Noussair, Charles N. AU - Villeval, Marie Claire TI - Emotions, Sanctions and Cooperation PY - 2011/Mar/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 5592 UR - https://www.iza.org/index.php/publications/dp5592 AB - We use skin conductance responses and self-reports of hedonic valence to study the emotional basis of cooperation and punishment in a social dilemma. Emotional reaction to free-riding incites individuals to apply sanctions when they are available. The application of sanctions activates a "virtuous emotional circle" that accompanies cooperation. Emotionally aroused cooperators relieve negative emotions when they punish free riders. In response, the free-riders experience negative emotions when punished, and increase their subsequent level of cooperation. The outcome is an increased level of contribution that becomes the new standard or norm. For a given contribution level, individuals attain higher levels of satisfaction when sanctioning institutions are in place. KW - skin conductance responses KW - experiment KW - cooperation KW - sanctions KW - emotions ER -