@TechReport{iza:izadps:dp5592, author={Joffily, Mateus and Masclet, David and Noussair, Charles N. and Villeval, Marie Claire}, title={Emotions, Sanctions and Cooperation}, year={2011}, month={Mar}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={5592}, url={https://www.iza.org/publications/dp5592}, abstract={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.}, keywords={skin conductance responses;experiment;cooperation;sanctions;emotions}, }