Overcoming free-riding in information goods: Sanctions or rewards?

Matthew J. Hashim, Jesse C. Bockstedt

Research output: Chapter in Book/Report/Conference proceedingConference contribution

3 Scopus citations

Abstract

Economic environments involving information goods suffer from an extensive free-riding problem. For example, social loafing and lurking on discussion forums, leeching on file-sharing networks, and pirating of digital goods. Despite their use, it is not clear what types of interventions result in the best outcomes for all players involved. We conduct a lab experiment using a public goods game to explore the role of rewards and sanctions or free-riding behavior at both the individual and group levels. Our results provide interesting insights on the behavior of free-riding and the use of incentives. Interestingly, sanctioning only the worst free-rider results in a significant decrease in free-riding for that player and marginal decreases in free-riding for all others. Rewarding only the highest contributor results in a significant increase in free-riding for everyone. Overall, our research offers significant insights for the design and implementation of interventions for environments having the free-rider problem.

Original languageEnglish (US)
Title of host publicationProceedings of the 48th Annual Hawaii International Conference on System Sciences, HICSS 2015
EditorsTung X. Bui, Ralph H. Sprague
PublisherIEEE Computer Society
Pages4834-4843
Number of pages10
ISBN (Electronic)9781479973675
DOIs
StatePublished - Mar 26 2015
Event48th Annual Hawaii International Conference on System Sciences, HICSS 2015 - Kauai, United States
Duration: Jan 5 2015Jan 8 2015

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
Volume2015-March
ISSN (Print)1530-1605

Other

Other48th Annual Hawaii International Conference on System Sciences, HICSS 2015
Country/TerritoryUnited States
CityKauai
Period1/5/151/8/15

ASJC Scopus subject areas

  • General Engineering

Fingerprint

Dive into the research topics of 'Overcoming free-riding in information goods: Sanctions or rewards?'. Together they form a unique fingerprint.

Cite this