Social learning promotes institutions for governing the commons

Cooperation in evolutionary games can be stabilized through punishment of non-cooperators, at a cost to those who do the punishing. Punishment can take different forms, in particular peer-punishment, in which individuals punish free-riders after the event, and pool-punishment, in which a fund for sanctioning is set up beforehand. These authors show that pool-punishment is superior to peer-punishment in dealing with second-order free-riders, who cooperate in the main game but refuse to contribute to punishment.