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Social Norms and Community Enforcement

Bibliographic Data

ID23329006
AuthorsMichihiro Kandori (Princeton University, corresponding author)
Year1992
Volume59
Issue1
Pages63
Publication date1992-01-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueThe Review of Economic Studies (JOURNAL)
Journal identifiersISSN: 0034-6527 • E-ISSN: 1467-937X
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.2307/2297925
OpenAlexW2056700716
LanguageEN
Citations received193
References cited4

The present paper extends the theory of self-enforcing agreements in a long-term relationship (the Folk Theorem in repeated games) to the situation where agents change their partners over time. Cooperation is sustained because defection against one agent causes sanction by others, and the paper shows how such a “social norm” is sustained by self-interested agents under various degrees of observability. Two main results are presented. The first one is an example where a community can sustain cooperation even when each agent knows nothing more than his personal experience. The second shows a Folk Theorem that the community can realize any mutually beneficial outcomes when each agent carries a label such as reputation, membership, or licence, which are revised in a systematic way.

Business · Economics · Enforcement · Epistemology · Folk theorem · Game theory · Law and economics · Microeconomics · Norm (philosophy) · Nothing · Observability · Political science · Repeated game · Reputation · Economic theories and models · Experimental Behavioral Economics Studies · Game Theory and Applications · Law · Mathematics

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Unique citing works193
Citations per year6,03
Citation span1994 - 2026 (33)
Citation velocitycurrent
Highly citedYes
Citation typesNeutral: 171

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