Render Help or Stand by? The present manuscript used EEG analysis to investigate the effects of group size on third-party punishment and its neural activity characteristics in the context of gain and loss.

Third-party punishment (TPP) is the punishment that an individual executes on a violator as a third party or observer to maintain social norms. Many studies have provided insights into the neural mechanisms of third-party punishment in group environments. Still, only some studies have focused on the neural mechanisms of third-party punishment in different group sizes. This study used EEG analysis to explore the effects of group size on third-party punishment and its neural activity characteristics from the context of gain and loss. The results show that the punishment rate and amount of the third party in the small group size and loss context were significantly higher than that in the large group size and gain context. EEG results showed that third-party punishment in small groups induced greater P2 than in large groups. In the loss context, the third-party punishment in the large group size induced more negative LNP and activated more theta band activation than in the small group. The results showed that the motivation of the third party to seek a positive reputation in the small size exceeds the balance of its economic interests and tends to punish the violator for maintaining fair norms. The loss context plays a promoting role in this process. However, in the large size, the third-party consideration of its interests was stronger than the willingness to maintain social norms. This study provided neuroscientific evidence for third-party punishment to maintain fair norms in a group environment and further explanations from neuroscience for understanding Indirect Reciprocity Theory.