The success of groups relies on cooperation. Diversity within a group undermines cooperation. The promising solution to increase cooperation is punishment. However, studies mostly used homogenous...Show moreThe success of groups relies on cooperation. Diversity within a group undermines cooperation. The promising solution to increase cooperation is punishment. However, studies mostly used homogenous groups. The objective was to answer the question if punishments systems are effective in enhancing cooperation in diverse groups. Data for this study were collected using an online experiment where the participants had to decide how many monetary units to contribute to the common pool. Diverse groups were created by two subgroups: Democrats and Republicans. Participants were randomly divided over two conditions; in one condition the third-party punishers made a strategy applying to everyone and in the other a strategy based on group membership. The findings suggest that punishment is less effective if discrimination is possible. A recommendation for organizations is that the use of punishment in diverse groups can be effective if the receiver does not expect to be discriminated against.Show less
