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Compensating the cooperators: is sorting in the prisoner's dilemma possible?

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  • Bohnet, Iris
  • Kubler, Dorothea

Abstract

Choice between different versions of a game may provide a means of sorting, allowing players with different preferences to self-select into groups of similar types. We experimentally investigate whether auctioning off the right to play a prisoner's dilemma game in which the cost of unilateral cooperation is lower than in the status quo version separates (conditional) cooperators from money maximizers. After the auction, significantly more subjects cooperate in the modified PD than in the status quo PD whereas there is no difference between cooperation rates if the two versions of the game were assigned to participants. However, sorting is incomplete and cooperation deteriorates over time. The auction price does not correspond to the differences in expected values between the modified and the status quo game. --

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 56 (2005)
Issue (Month): 1 (January)
Pages: 61-76

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Handle: RePEc:eee:jeborg:v:56:y:2005:i:1:p:61-76

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Citations

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Cited by:
  1. Pedro Dal Bó & Andrew Foster & Louis Putterman, 2008. "Institutions and Behavior: Experimental Evidence on the Effects of Democracy," NBER Working Papers 13999, National Bureau of Economic Research, Inc.
  2. Jason Aimone & Laurence R. Iannaccone & Michael D. Makowsky & Jared Rubin, 2010. "Endogenous Group Formation via Unproductive Costs," Working Papers 2010-15, Towson University, Department of Economics, revised Sep 2010.
  3. Tor Eriksson & Sabrina Teyssier & Marie Claire Villeval, 2009. "Self-selection and the Efficiency of Tournaments," Post-Print halshs-00451600, HAL.
  4. Michalis Drouvelis & Julian C. Jamison, 2012. "Selecting public goods institutions: who likes to punish and reward?," Working Papers 12-5, Federal Reserve Bank of Boston.
  5. Ertaç, Seda & Hortaçsu, Ali & Roberts, James W., 2011. "Entry into auctions: An experimental analysis," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 168-178, March.
  6. Grimm, Veronika & Mengel, Friederike, 2011. "Matching technology and the choice of punishment institutions in a prisoner's dilemma game," Journal of Economic Behavior & Organization, Elsevier, vol. 78(3), pages 333-348, May.
  7. Frédéric Schneider & Roberto A. Weber, 2013. "Long-term commitment and cooperation," ECON - Working Papers 130, Department of Economics - University of Zurich.
  8. Peter Werner, 2010. "The Dynamics of Cooperation in Group Lending - A Microfinance Experiment," Working Paper Series in Economics 49, University of Cologne, Department of Economics.
  9. Anna Gunnthorsdottir & Daniel Houser & Kevin McCabe & Holly Ameden, 2004. "Disposition, History and Contributions in Public Goods Experiments," Experimental 0401001, EconWPA.
  10. Friederike Mengel & Veronika Grimm, 2007. "Cooperation In Viscous Populations - Experimental Evidence," Working Papers. Serie AD 2007-17, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  11. Huck, Steffen & Ruchala, Gabriele K. & Tyran, Jean-Robert, 2006. "Competition Fosters Trust," CEPR Discussion Papers 6009, C.E.P.R. Discussion Papers.
  12. Thomas Dohmen & Armin Falk, 2011. "Performance Pay and Multidimensional Sorting: Productivity, Preferences, and Gender," American Economic Review, American Economic Association, vol. 101(2), pages 556-90, April.

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