Cooperation in an Overlapping Generations Experiment
AbstractRecent theoretical work shows that folk theorems can be developed for infiniteoverlapping generations games. Cooperation in such games can be sustained as aNash equilibrium. Besides the efficient cooperative equilibrium there is alsothe inefficient non-cooperative equilibrium. This paper investigatesexperimentally whether cooperation actually occurs in a simple overlappinggenerations game. Subjects both play the game and formulate full strategies. Inour base-line treatment subjects fail to exploit the intertemporal structure ofthe game. When we provide subjects with a recommendation to play a (subgameperfect) grim trigger strategy, a substantial part of the population developstrigger-like strategies. However, a remaining group of unconditional defectorsprevents the cooperative outcome to evolve.
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Bibliographic InfoArticle provided by Elsevier in its journal Games and Economic Behavior.
Volume (Year): 36 (2001)
Issue (Month): 2 (August)
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Web page: http://www.elsevier.com/locate/inca/622836
Other versions of this item:
- Offerman, T.J.S. & Potters, J.J.M. & Verbon, H.A.A., 2001. "Cooperation in an overlapping generations experiment," Open Access publications from Tilburg University urn:nbn:nl:ui:12-86814, Tilburg University.
- Theo Offerman & Jan PottersHarry A.A. Verbon & Harry A.A. Verbon, 1999. "Cooperation in an Overlapping Generations Experiment," Tinbergen Institute Discussion Papers 99-019/1, Tinbergen Institute.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- D90 - Microeconomics - - Intertemporal Choice - - - General
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