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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 end-game 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 end-game effects are driven by strategically-cooperating individuals depends on the profitability of cooperation.

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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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Cited by:
  1. Müller, Wieland & Tan, Fangfang, 2013. "Who acts more like a game theorist? Group and individual play in a sequential market game and the effect of the time horizon," Games and Economic Behavior, Elsevier, vol. 82(C), pages 658-674.
  2. Petrie, Ragan & Jacobson, Sarah, 2013. "Favor Trading in Public Good Provision," Department of Economics Working Papers 2013-03, Department of Economics, Williams College.
  3. Urs Fischbacher & Simon Gaechter, 2009. "The behavioral validity of the strategy method in public good experiments," Discussion Papers 2009-25, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  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. 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.
  6. Loukas Balafoutas & Nikos Nikiforakis, 2012. "1 Norm enforcement in the city: A natural field experiment," Natural Field Experiments 00385, The Field Experiments Website.
  7. Dreber-Almenberg, Anna & Fudenberg, Drew & Rand, David G., 2014. "Who cooperates in repeated games: The role of altruism, inequity aversion, and demographics," Scholarly Articles 11923167, Harvard University Department of Economics.

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