The Detrimental Effects of Sanctions on Intragroup Trust: Comparing Punishments and Rewards

Recent work shows that both reward and punishment systems increase short-term cooperation in social dilemmas. Yet, a growing body of research finds that punishment systems generate a range of negative side effects, including an undermining of trust in fellow group members' cooperative intentions. The present work asks whether reward systems can generate the same positive effects as punishment systems (increased cooperation) without the negative side effects (decreased interpersonal trust) or whether reward systems also lead to detrimental effects on trust. In two experiments we find that once removed, reward systems, like punishment systems, reduced trust to levels below a control group who never experienced sanctions. This research highlights the detrimental effects of punishment and reward systems on intragroup trust and thus shows that while reward systems can generate the same positive effects as punishment systems, they also generate the same negative side effects.