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Revisiting strategic versus non-strategic cooperation

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  • Ernesto Reuben

    ()

  • Sigrid Suetens

    ()

Abstract

We use a novel experimental design to disentangle strategically- and non-strategically-motivated cooperation. By using contingent responses in a repeated sequential prisoners’ dilemma with a known probabilistic end, we differentiate end-game behavior from continuation behavior within individuals while controlling for expectations. This design allows us to determine the extent to which strategically-cooperating individuals are responsible for the so-called endgame effect. Experiments with two different subject pools indicate that the most common motive for cooperation in repeated games is strategic and that the extent to which endgame effects are driven by strategically-cooperating individuals depends on the profitability of cooperation.

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File URL: http://hdl.handle.net/10.1007/s10683-011-9286-4
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Bibliographic Info

Article provided by Springer in its journal Experimental Economics.

Volume (Year): 15 (2012)
Issue (Month): 1 (March)
Pages: 24-43

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Handle: RePEc:kap:expeco:v:15:y:2012:i:1:p:24-43

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Web page: http://www.springerlink.com/link.asp?id=102888

Related research

Keywords: Repeated games; Cooperation; Reputation building; Strong reciprocity; C92; D01; D70;

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Citations

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Cited by:
  1. Fischbacher, Urs & Gächter, Simon & Quercia, Simone, 2012. "The behavioral validity of the strategy method in public good experiments," Journal of Economic Psychology, Elsevier, vol. 33(4), pages 897-913.
  2. Loukas Balafoutas & Nikos Nikiforakis, 2012. "Norm enforcement in the city: A natural field experiment," Working Papers 2012-12, Faculty of Economics and Statistics, University of Innsbruck.
  3. Sarah Jacobson & Ragan Petrie, 2012. "Favor Trading in Public Good Provision," Working Papers 1032, George Mason University, Interdisciplinary Center for Economic Science.
  4. Wright, Julian, 2013. "Punishment strategies in repeated games: Evidence from experimental markets," Games and Economic Behavior, Elsevier, vol. 82(C), pages 91-102.
  5. Wieland Mueller & Fangfang Tan, 2011. "Who acts more like a game theorist? Group and individual play in a sequential market game and the effect of the time horizon," Vienna Economics Papers 1111, University of Vienna, Department of Economics.
  6. Dreber, Anna & Fudenberg, Drew & Rand, David G., 2014. "Who cooperates in repeated games: The role of altruism, inequity aversion, and demographics," Journal of Economic Behavior & Organization, Elsevier, vol. 98(C), pages 41-55.
  7. Johnsen, Åshild A & Kvaløy, Ola, 2014. "You always meet twice: An experiment on intrinsic versus instrumental reciprocity," UiS Working Papers in Economics and Finance 2014/2, University of Stavanger.

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