A newly published study in the Proceedings of the National Academy of Sciences challenges long-held ideas about how punishment encourages cooperation in society. For years, many scientists thought that having “third parties”, people not directly affected by wrongdoing, punish selfish behavior was crucial for groups to work together harmoniously. But the new research suggests that when punishers are paid for their actions, it can actually destabilize cooperation and even harm the larger group.
Researchers Raihan Alam and Tage S. Rai from the University of California, San Diego, ran a series of experiments involving thousands of participants. In these experiments, participants played simple economic games where they could act generously or selfishly with money. Sometimes, a third person (the punisher) was present and had the option to penalize selfish behavior. The twist? In some versions of the games, these punishers received a financial bonus for each act of punishment.
Surprisingly, when punishers stood to profit from their actions, people became less likely to act cooperatively. Rates of cooperation dropped right away and stayed lower, even if the paid punishers almost always punished only unfair acts. The researchers believe this happens because the presence of profit makes it unclear whether punishers are motivated by what’s right or just by personal gain. This confusion weakens the power of punishment as a signal of social norms, and as a result, people don’t feel as confident that cooperation is expected or will be rewarded.
It gets worse: participants who might have benefited from more generosity, those on the receiving end, often chose to play with paid punishers, mistakenly thinking it would boost their earnings. In reality, this decision reduced their own payouts by nearly 20%. This shows that people often misunderstand the effects of profit-driven punishment and may end up hurting their own interests.
The study also highlights broader concerns. Real-world policies, like police receiving bonuses for arrests or use of private prisons, may backfire by encouraging profit-driven punishment that erodes public trust and cooperation. The researchers conclude that profit incentives degrade the value of punishment as a way to communicate social norms and encourage good behavior. They suggest that policymakers should think twice before relying on incentives that pay people to punish, and instead consider alternatives like restorative justice practices that aim to repair harm and build relationships.
Ultimately, this research challenges some common beliefs about how to keep societies cooperative and fair, warning that paid punishment may do more harm than good when it comes to building trust and cooperation among people.
