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Cooperation and Punishment

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  • Evans, Robert
  • Thomas, Jonathan P

Abstract

We show that, in repeated common interest games without discounting, strong "perturbation implies efficiency" results require that the perturbations must include strategies that are "draconian" in the sense that they are prepared to punish to the maximum extent possible. Moreover, there is a draconian strategy whose presence in the perturbations guarantees that any equilibrium is efficient. We also argue that the results of Anderlini and Sabourian (1995) using perturbation strategies that are cooperative (and hence nondraconian) are not due to computability per se but to the further restrictions they impose on allowable beliefs.

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Bibliographic Info

Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 69 (2001)
Issue (Month): 4 (July)
Pages: 1061-75

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Handle: RePEc:ecm:emetrp:v:69:y:2001:i:4:p:1061-75

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References

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  1. Aumann, Robert J. & Sorin, Sylvain, 1989. "Cooperation and bounded recall," Games and Economic Behavior, Elsevier, vol. 1(1), pages 5-39, March.
  2. Sorin, Sylvain, 1999. "Merging, Reputation, and Repeated Games with Incomplete Information," Games and Economic Behavior, Elsevier, vol. 29(1-2), pages 274-308, October.
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Cited by:
  1. Samuel Bowles & Herbert Gintis, 2001. "Social Capital and Community Governance," Working Papers 01-01-003, Santa Fe Institute.
  2. Dan Protopopescu, 2009. "Dynamic Stackelberg Game with Risk-Averse Players: Optimal Risk-Sharing under Asymmetric Information," UFAE and IAE Working Papers 797.09, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  3. Kumabe, Masahiro & Mihara, H. Reiju, 2006. "Computability of simple games: A characterization and application to the core," MPRA Paper 437, University Library of Munich, Germany.
  4. Herbert Gintis, 2000. "Strong Reciprocity and Human Sociality," UMASS Amherst Economics Working Papers 2000-02, University of Massachusetts Amherst, Department of Economics.
  5. Bochet, Olivier & Page, Talbot & Putterman, Louis, 2006. "Communication and punishment in voluntary contribution experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 60(1), pages 11-26, May.
  6. Louis Putterman & Christopher M. Anderson, 2003. "Do Non-strategic Sanctions Obey the Law of Demand? The Demand for Punishment in the Voluntary Contribution Mechanism," Working Papers 2003-15, Brown University, Department of Economics.
  7. Chun Lei Yang & Ching Syang Jack Yue, 2004. "The Rise of Cooperation in Correlated Matching Prisoners Dilemma: An Experiment," Levine's Bibliography 122247000000000097, UCLA Department of Economics.

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