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The Possibility of Cooperation in an n-Person Prisoners' Dilemma with Institutional Arrangements

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  • Okada, Akira

Abstract

We investigate how cooperation is possible among self-interested individuals in an n-person prisoners' dilemma from the viewpoint of institutional arrangements. Assuming that individuals create by their free consent an institutional order to enforce an agreement of cooperation, we present a noncooperative game model in which individuals have negotiations for creating an enforcement agency and also for cooperation in advance of taking actual actions. The noncooperative solution of our institutional arrangement game shows that the probability of each individual participating in negotiations monotonically decreases and converges to zero as the number of individuals becomes larger and larger. Our noncooperative game model for institutional arrangements is applied to an environmental pollution problem and some numerical results are given. Copyright 1993 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 77 (1993)
Issue (Month): 3 (November)
Pages: 629-56

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Handle: RePEc:kap:pubcho:v:77:y:1993:i:3:p:629-56

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Web page: http://www.springerlink.com/link.asp?id=100332

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Cited by:
  1. Akira Okada, 2008. "The second-order dilemma of public goods and capital accumulation," Public Choice, Springer, vol. 135(3), pages 165-182, June.
  2. Janus, Thorsten & Lim, Jamus Jerome, 2009. "Sticks and carrots: Two incentive mechanisms supporting intra-group cooperation," Economics Letters, Elsevier, vol. 102(3), pages 177-180, March.
  3. Michael Kosfeld & Arno Riedl, 2004. "The Design of (De)centralized Punishment Institutions for Sustaining Co-operation," Tinbergen Institute Discussion Papers 04-025/1, Tinbergen Institute.
  4. Michael Kosfeld & Akira Okada & Arno Riedl, 2006. "Institution Formation in Public Goods Games," IEW - Working Papers 299, Institute for Empirical Research in Economics - University of Zurich.
  5. Inarra, Elena & Concepcion Larrea, M. & Saracho, Ana I., 2007. "The supercore for normal-form games," Journal of Economic Theory, Elsevier, vol. 132(1), pages 530-538, January.
    • Iñarra García, María Elena & Larrea Jaurrieta, María Concepción & Saracho de la Torre, Ana Isabel, 2003. "The Supercore for Normal Form Games," IKERLANAK 2003-04, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
  6. Robert Finger & Anna Borer, 2013. "Cooperative Management of a Traditional Irrigation System in the Swiss Alps," Social Sciences, MDPI, Open Access Journal, vol. 2(1), pages 1-19, January.
  7. John Duffy & Huan Xie, 2012. "Group Size and Cooperation among Strangers," Working Papers 12010, Concordia University, Department of Economics.
  8. Roman, Mihai Daniel, 2010. "A game theoretic approach of war with financial influences," MPRA Paper 38389, University Library of Munich, Germany.
  9. Josef Falkinger, 2004. "Noncooperative Support of Public Norm Enforcement in Large Societies," CESifo Working Paper Series 1368, CESifo Group Munich.
  10. Clemens, Georg & Rau, Holger A., 2014. "Do leniency policies facilitate collusion? Experimental evidence," DICE Discussion Papers 130, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  11. Róbert F. Veszteg & Erita Narhetali, 2010. "Public-good games and the Balinese," International Journal of Social Economics, Emerald Group Publishing, vol. 37(9), pages 660-675, September.

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