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Multiple Prisoner's Dilemma Games with(out) an Outside Option: an Experimental Study

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  • Esther Hauk

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Abstract

Experiments in which subjects play simultaneously several finite prisoner's dilemma supergames with and without an outside option reveal that: (i) subjects use probabilistic start and endeffect behaviour, (ii) the freedom to choose whether to play the prisoner's dilemma game enhances cooperation, (iii) if the payoff for simultaneous defection is negative, subjects' tendency to avoid losses leads them to cooperate; while this tendency makes them stick to mutual defection if its payoff is positive.

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Bibliographic Info

Article provided by Springer in its journal Theory and Decision.

Volume (Year): 54 (2003)
Issue (Month): 3 (May)
Pages: 207-229

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Handle: RePEc:kap:theord:v:54:y:2003:i:3:p:207-229

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Web page: http://www.springerlink.com/link.asp?id=100341

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Keywords: Prisoner's dilemma; Cooperation; Exit; Experiments; Loss aversion;

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References

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  1. Marcet, A. & Nicolini, J.P., 1997. "Recurrent Hyperinflations and Learning," Papers 9721, Centro de Estudios Monetarios Y Financieros-.
  2. Brock, W.A. & Hommes, C.H., 1996. "A Rational Route to Randomness," Working papers 9530r, Wisconsin Madison - Social Systems.
  3. Ashlock, Daniel & Smucker, Mark D. & Stanley, E. Ann & Tesfatsion, Leigh S., 1996. "Preferential Partner Selection in an Evolutionary Study of Prisoner's Dilemma," Staff General Research Papers 1687, Iowa State University, Department of Economics.
  4. Kreps, David M. & Milgrom, Paul & Roberts, John & Wilson, Robert, 1982. "Rational cooperation in the finitely repeated prisoners' dilemma," Journal of Economic Theory, Elsevier, vol. 27(2), pages 245-252, August.
  5. Stanley, E.A. & Ashlock, Daniel & Tesfatsion, Leigh, 1994. "Iterated Prisoner's Dilemma with Choice and Refusal of Partners," Staff General Research Papers 11180, Iowa State University, Department of Economics.
  6. William A. Brock & Cars H. Hommes, 1995. "Rational Routes to Randomness," Working Papers 95-03-029, Santa Fe Institute.
  7. James Andreoni & John H Miller, 1997. "Rational Cooperation in the finitely repeated prisoner's dilemma: experimental evidence," Levine's Working Paper Archive 670, David K. Levine.
  8. Leigh TESFATSION, 1995. "A Trade Network Game With Endogenous Partner Selection," Economic Report 36, Iowa State University Department of Economics.
  9. Esther Hauk, 1999. "Multiple prisoner's dilemma games with (out) an outside option: An experimental study," Economics Working Papers 391, Department of Economics and Business, Universitat Pompeu Fabra.
  10. Hauk, Esther, 2001. "Leaving the Prison: Permitting Partner Choice and Refusal in Prisoner's Dilemma Games," Computational Economics, Society for Computational Economics, vol. 18(1), pages 65-87, August.
  11. Fudenberg, Drew & Levine, David K., 1995. "Consistency and cautious fictitious play," Journal of Economic Dynamics and Control, Elsevier, vol. 19(5-7), pages 1065-1089.
  12. Ghosh, Parikshit & Ray, Debraj, 1996. "Cooperation in Community Interaction without Information Flows," Review of Economic Studies, Wiley Blackwell, vol. 63(3), pages 491-519, July.
  13. Dixon,Huw David & Rankin,Neil, 1995. "The New Macroeconomics," Cambridge Books, Cambridge University Press, number 9780521479479, April.
  14. Esther Hauk & Rosemarie Nagel, 2000. "Choice of partners in multiple two-person prisoner's dilemma games: An experimental study," Economics Working Papers 487, Department of Economics and Business, Universitat Pompeu Fabra.
  15. Erev, Ido & Roth, Alvin E, 1998. "Predicting How People Play Games: Reinforcement Learning in Experimental Games with Unique, Mixed Strategy Equilibria," American Economic Review, American Economic Association, vol. 88(4), pages 848-81, September.
  16. Selten, Reinhard & Stoecker, Rolf, 1986. "End behavior in sequences of finite Prisoner's Dilemma supergames A learning theory approach," Journal of Economic Behavior & Organization, Elsevier, vol. 7(1), pages 47-70, March.
  17. Cachon, Gerard P & Camerer, Colin F, 1996. "Loss-Avoidance and Forward Induction in Experimental Coordination Games," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 165-94, February.
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Cited by:
  1. John Duffy & Felix Munoz-Garcia, 2009. "Patience or Fairness? Analyzing Social Preferences in Repeated Games," Working Papers 383, University of Pittsburgh, Department of Economics, revised May 2009.
  2. S. K. Berninghaus & Werner Gueth & Katinka Pantz & Bodo Vogt, 2004. "Evolution of Spontaneous Social Exchange - An Experimental Study -," Papers on Strategic Interaction 2004-17, Max Planck Institute of Economics, Strategic Interaction Group.
  3. Claudia Keser & Claude Montmarquette, 2011. "Voluntary versus Enforced Team Effort," Games, MDPI, Open Access Journal, vol. 2(3), pages 277-301, August.
  4. Esther Hauk, 1999. "Multiple prisoner's dilemma games with (out) an outside option: An experimental study," Economics Working Papers 391, Department of Economics and Business, Universitat Pompeu Fabra.
  5. Kene Boun My & Benoît Chalvignac, 2009. "Voluntary participation and cooperation in a collective-good game," Working Papers of BETA 2009-01, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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