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Learning to cooperate via indirect reciprocity

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Author Info

  • Berger, Ulrich

Abstract

Cooperating in the Prisoner's Dilemma is irrational and some supporting mechanism is needed to stabilize cooperation. Indirect reciprocity based on reputation is one such mechanism. Assessing an individual's reputation requires first-order information, i.e. knowledge about its previous behavior, as it is utilized under image scoring. But there seems to be an agreement that in order to successfully stabilize cooperation, higher-order information is necessary, i.e. knowledge of others' previous reputations. We show here that such a conclusion might have been premature. Tolerant scoring, a first-order assessment rule with built-in tolerance against single defections, can lead a society to stable cooperation.

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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 72 (2011)
Issue (Month): 1 (May)
Pages: 30-37

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Handle: RePEc:eee:gamebe:v:72:y:2011:i:1:p:30-37

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Web page: http://www.elsevier.com/locate/inca/622836

Related research

Keywords: Evolution Cooperation Prisoner's Dilemma Indirect reciprocity Scoring rule First-order information;

References

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  1. I. Gilboa & A. Matsui, 2010. "Social Stability and Equilibrium," Levine's Working Paper Archive 534, David K. Levine.
  2. M.A. Nowak & K. Sigmund, 1998. "Evolution of Indirect Reciprocity by Image Scoring/ The Dynamics of Indirect Reciprocity," Working Papers ir98040, International Institute for Applied Systems Analysis.
  3. Okuno-Fujiwara Masahiro & Postlewaite Andrew, 1995. "Social Norms and Random Matching Games," Games and Economic Behavior, Elsevier, vol. 9(1), pages 79-109, April.
  4. Bolton, Gary E. & Katok, Elena & Ockenfels, Axel, 2005. "Cooperation among strangers with limited information about reputation," Journal of Public Economics, Elsevier, vol. 89(8), pages 1457-1468, August.
  5. Michi Kandori, 2010. "Social Norms and Community Enforcement," Levine's Working Paper Archive 630, David K. Levine.
  6. Seinen, Ingrid & Schram, Arthur, 2006. "Social status and group norms: Indirect reciprocity in a repeated helping experiment," European Economic Review, Elsevier, vol. 50(3), pages 581-602, April.
  7. Matsui, Akihiko, 1992. "Best response dynamics and socially stable strategies," Journal of Economic Theory, Elsevier, vol. 57(2), pages 343-362, August.
  8. Takahashi, Satoru, 2010. "Community enforcement when players observe partners' past play," Journal of Economic Theory, Elsevier, vol. 145(1), pages 42-62, January.
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Cited by:
  1. Berger Ulrich & Ansgar GrĂ¼ne, 2014. "Evolutionary Stability of Indirect Reciprocity by Image Scoring," Department of Economics Working Papers wuwp168, Vienna University of Economics, Department of Economics.

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