Sanctions (i.e., rewards and punishments) are often proposed as straightforward solutions to promote cooperation and prevent noncooperation. The effects of sanctions are, however, complex. Whereas sanctions may often work, the literature on sanctioning behavior also shows that sanctions may backfire. This chapter presents a research program to reveal the psychological processes that underlie these negative effects. In doing so, it also discusses the conditions that should be met for sanctions to work and the psychological processes that determine whether or not people want to use sanctions as a means to increase cooperation.