In the DG, second-party punishment means that the recipient, Player B, has the option of punishing the dictator. We developed the following design to compare the relative strength of secondand third-party punishment. At the beginning of the experiment, subjects were randomly assigned either the role of the dictator (Player A) or that of the recipient (Player B). Then we formed groups of two players with each group comprising one Player A and one Player B. The players in these groups then participated in a second-party punishment (SP) condition and in a third-party punishment (TP) condition according to the design described below. The sequence of the two conditions was balanced to control for order effects.

DEFINE: Clarifies the DG variant where the recipient can punish the dictator, distinguishing it from third-party punishment.

Ernst Fehr, Third-Party Punishment and …, loc. 72