Giulia Andrighetto

Dynamic sanctioning for robust and cost-efficient norm compliance

As explained by Axelrod in his seminal work An Evolutionary Approach to Norms, punishment is a key mechanism to achieve the necessary social control and to impose social norms in a self-regulated society. In this paper, we distinguish between two enforcing mechanisms. i.e. punishment and sanction, focusing on the specific ways in which they favor the emergence and maintenance of cooperation. The key research question is to find more stable and cheaper mechanisms for norm compliance in hybrid social environments (populated by humans and computational agents). To achieve this task, we have developed a normative agent able to punish and sanction defectors and to dynamically choose the right amount of punishment and sanction to impose on them (Dynamic Adaptation Heuristic). The results obtained through agent-based simulation show us that sanction is more effective and less costly than punishment in the achievement and maintenance of cooperation and it makes the population more resilient to sudden changes than if it were enforced only by mere punishment.

Simulating protection rackets: a case study of the Sicilian Mafia

Protection racketeering groups are powerful, deeply entrenched in multiple societies across the globe, and they harm the societies and economies in which they operate in multiple ways. These reasons make their dynamics important to understand and an objective of both scientific and application-oriented interest. Legal and social norm-based approaches arguably play significant roles in influencing protection racket dynamics. We propose an agent-based simulation model, the Palermo Scenario, to enrich our understanding of these influences and to test the effect of different policies on protection racket dynamics. Our model integrates the legal and the social norm-based approaches and uses a complex normative agent architecture that enables the analysis of both agents’ behaviours and mental normative representations driving behaviour. We demonstrate the usefulness of the model and the benefits of using this complex normative architecture through a case study of the Sicilian Mafia.

Are Some Countries More Honest than Others? Evidence from a Tax Compliance Experiment in Sweden and Italy

This study examines cultural differences in ordinary dishonesty between Italy and Sweden, two countries with different reputations for trustworthiness and probity. Exploiting a set of cross-cultural tax compliance experiments, we find that the average level of tax evasion (as a measure of ordinary dishonesty) does not differ significantly between Swedes and Italians. However, we also uncover differences in national “styles” of dishonesty. Specifically, while Swedes are more likely to be either completely honest or completely dishonest in their fiscal declarations, Italians are more prone to fudging (i.e., cheating by a small amount). We discuss the implications of these findings for the evolution and enforcement of honesty norms.

The Norm-Signaling Effects of Group Punishment: Combining Agent-Based Simulation and Laboratory Experiments

Punishment plays a crucial role in favoring and maintaining social order. Recent studies emphasize the effect of the norm-signaling function of punishment. However, very little attention has been paid so far to the potential of group punishment. We claim that when inflicted by an entire group, the recipient of punishment views it as expressing norms. The experiments performed in this work provide evidence that humans are motivated not only by material incentives that punishment imposes but also by normative information that it conveys. The same material incentive has a different effect on the individuals’ future compliance depending on the way it is implemented, having a stronger effect when it also conveys normative information. We put forward the hypothesis that by inflicting equal material incentives, group punishment is more effective in enhancing compliance than uncoordinated punishment, because it takes advantage of the norm-signaling function of punishment. In support of our hypothesis, we present cross-methodological data, that is, data obtained through agent-based simulation and laboratory experiments with human subjects. The combination of these two methods allows us to provide an explanation for the proximate mechanisms generating the cooperative behavior observed in the laboratory experiment.

Norm Dynamics Within the Mind

Social norms are largely regarded as solutions to the problem of attaining and maintaining social order (Axelrod, 1986; Durkheim, 1950 [1895]; Fehr & Fishbacher, 2004; Posner, 2000). It is argued that the norm of reciprocity, for example, solves what is currently known as the puzzle of human cooperation (Axelrod, 1986; Boyd & Richerson, 1988; Gintis, 2003), revolving around the following question: How can self-defeating behaviour, like giving help, compete with self-enhancing strategies, like not reciprocating the received help, and successfully spread over a given population?

Tax Compliance Under Different Institutional Settings in the EU: An Experimental Analysis

In this paper we study how people from different European countries would react, in terms of tax compliance, to institutional changes. We choose an experimental setting and we focus on two features of the tax system – efficiency and tax rate. We develop our analysis in three countries characterized by different systems: Italy, Sweden, UK. The main finding is that participants from different countries react with the same intensity to efficiency changes but not to increases in the tax rate. In all countries tax compliance decreases as tax rate increases, but the reaction is stronger in Italy and softer in UK. Policy implications – mostly focused on fiscal harmonization - follow.

An Agent Based Model of Camorra : Comparing Punishment and Norm-Based Policies in Contrasting Illegal Activities

In this chapter, we will discuss the need of Agent Based Modelling (ABM) to study the dynamics of a specific type of illegal system, i.e., Extortion Racket Systems, which appear to be highly prosperous and to behave as a dynamic system, spreading wide and fast in current Western societies.