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Motives behind cooperation in finitely repeated prisoner's dilemma

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  • Chakraborty, Anujit

Abstract

This paper deploys a novel experiment to compare three behavioral theories that explain both selfish and non-selfish cooperation. The three theories fuse reputational cooperation (à la Kreps et al. (1982)) with the following three non-selfish motives respectively: caring about others (Altruism), being conscientious about cooperation (Duty), and enjoying social-efficiency (Efficiency-Seeking). We use reputational cooperation under purely Selfish preferences as a fourth theory. Our experimental design varies the decline-rate of future rewards, under which these theories predict rich patterns of behavior. Based on a Finite Mixture Model, the data is best explained if the modal subject types are Selfish and Efficiency-Seeking: We estimate that 40-49% of our subjects are Selfish, 36-45% are Efficiency-seeking, and 6-20% are Altruistic. We find little evidence for Duty players.

Suggested Citation

  • Chakraborty, Anujit, 2023. "Motives behind cooperation in finitely repeated prisoner's dilemma," Games and Economic Behavior, Elsevier, vol. 141(C), pages 105-132.
    • Handle: RePEc:eee:gamebe:v:141:y:2023:i:c:p:105-132
    DOI: 10.1016/j.geb.2023.06.002
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    More about this item

    Keywords

    Experimental economics; Finitely repeated prisoner's dilemma; Behavioral game theory;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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