@Article{Gurdal2024, author={G{\"u}rdal, Mehmet Y. and Torul, Orhan and Yah{\c{s}}i, Mustafa}, title={The seeds of success: the pivotal role of first round cooperation in public goods games}, journal={Journal of the Economic Science Association}, year={2024}, month={Jun}, day={01}, volume={10}, number={1}, pages={113-135}, abstract={This paper examines cooperation and punishment in a public goods game in Istanbul. Unlike prior within-subject designs, we use a between-subject design with separate no-punishment and punishment conditions. This approach reveals that punishment significantly increases contributions, demonstrating the detrimental effect of having prior experience without sanctions. We highlight two critical factors---heterogeneous initial contributions across groups and how subjects update their contributions based on prior contributions and received punishment. An agent-based model verifies that the interaction between these two factors leads to a strong persistence of contributions over time. Analysis of related data from comparable cities shows similar patterns, suggesting our findings likely generalize if using a between-subject design. We conclude that overlooking within-group heterogeneity biases cross-society comparisons and subsequent policy implications.}, issn={2199-6776}, doi={10.1007/s40881-023-00153-3}, url={https://doi.org/10.1007/s40881-023-00153-3} }