Sanctions Curb Free-Riding, Rewards Worsen It in Digital Goods
The article explores how to deal with people who take advantage of shared information without contributing. In a lab experiment, researchers tested rewards and punishments to see what works best. They found that punishing the worst free-rider reduces their behavior, but rewarding the top contributor actually makes more people free-ride. This study gives valuable insights for fixing the free-rider problem in information-sharing situations.