The price you pay: cost-dependent reputation effects of altruistic punishment

Abstract 

Two studies were conducted to test reputation-based accounts of altruism which predict that the more people sacrifice to help others, the greater their ensuing benefits. We tested this prediction by varying the cost invested in altruistic behavior, here modeled as costly sanctioning of unfair behavior. Confirming this prediction, it was found that only altruists who invested most in the punishment of unfairness were preferred as partners and were transferred more money in a subsequent trust game. This implies that the benefits of behaving altruistically depend upon how much one is willing to pay. It is discussed that these results fit both an indirect reciprocity and a costly signaling framework.

Keywords: Altruism, Altruistic punishment, Reputation, Costly signaling, Indirect reciprocity