Can Leading by Example Alone Improve Cooperation?

Cooperation is essential for the survival of human society. Understanding the nature of cooperation and its underlying mechanisms is crucial for studying human behavior. This paper investigates the impact of leadership on public cooperation by employing repeated sequential public goods games, as well as by examining whether leading by example (through rewards and punishments) can promote cooperation and organizational success. The leaders were assigned randomly and were given the authority to reward or punish. As a result, (1) the leaders showed a strong tendency toward reciprocity by punishing free riders and rewarding cooperators at their own expense, which enhanced the intrinsic motivation for others to follow their example; and (2) both rewards and punishments were effective in promoting cooperation, but punishment was more effective in sustaining a high level of collaboration. Additionally, leaders preferred using rewards and were more reluctant to use punishments. These findings are crucial for creating organizational structures that foster cooperation.