Understanding how to respond to transgressions is central to cooperation, yet little is known about how individuals understand the consequences of these responses. Accordingly, the current study explored children's (ages 5-9), adolescents' (ages 11-14), and adults' (N = 544, predominantly White, ~50% female, tested in 2021) understandings of three such responses-forgiveness, punishment, and doing nothing. At all ages, participants differentiated between the consequences of these three responses. Forgiveness was associated with more positive and fewer negative outcomes, while the opposite was true for punishment and doing nothing. With age, participants were less likely to expect positive outcomes, and this effect was strongest for punishment and doing nothing. The results of this study allow novel insights into reasoning about three important response strategies.