IDEAS home Printed from https://ideas.repec.org/a/sae/jocore/v33y1989i2p274-308.html
   My bibliography  Save this article

Testing the Waters

Author

Listed:
  • Hugh Ward

    (Department of Government, University of Essex)

Abstract

Individuals often fail to cooperate because they are not sufficiently reassured that others involved share their desire for reciprocal cooperation. Such situations may be seen as Assurance games. The existing literature fails to examine the problems posed by lack of information about others' preferences, either assuming that information is perfect, or that it may be made perfect by mutual verbal reassurances. This article shows that in sequential public goods supergames, players with Assurance preferences may gather information about others' preferences from their game moves, and that it may pay them to take risks of short-term losses in order to do so. The most efficient information-gathering strategy for such a player is cooperation. The model helps us understand why players of Assurance often appear to take risks in order to “test the waters†with cooperative moves, and why the problem posed for collective action is sometimes successfully resolved.

Suggested Citation

  • Hugh Ward, 1989. "Testing the Waters," Journal of Conflict Resolution, Peace Science Society (International), vol. 33(2), pages 274-308, June.
  • Handle: RePEc:sae:jocore:v:33:y:1989:i:2:p:274-308
    DOI: 10.1177/0022002789033002005
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0022002789033002005
    Download Restriction: no

    File URL: https://libkey.io/10.1177/0022002789033002005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Kreps, David M. & Wilson, Robert, 1982. "Reputation and imperfect information," Journal of Economic Theory, Elsevier, vol. 27(2), pages 253-279, August.
    3. Stein, Arthur A., 1982. "Coordination and collaboration: regimes in an anarchic world," International Organization, Cambridge University Press, vol. 36(2), pages 299-324, April.
    4. Leng, Russell J., 1984. "Reagan and the Russians: Crisis Bargaining Beliefs and the Historical Record," American Political Science Review, Cambridge University Press, vol. 78(2), pages 338-355, June.
    5. Ward, Hugh, 1987. "The Risks of a Reputation for Toughness: Strategy in Public Goods Provision Problems Modelled by Chicken Supergames," British Journal of Political Science, Cambridge University Press, vol. 17(1), pages 23-52, January.
    6. Milgrom, Paul & Roberts, John, 1982. "Predation, reputation, and entry deterrence," Journal of Economic Theory, Elsevier, vol. 27(2), pages 280-312, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brosig, Jeannette & Heinrich, Timo, 2011. "Reputation and Mechanism Choice in Procurement Auctions – An Experiment," Ruhr Economic Papers 254, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    2. Chrysanthos Dellarocas, 2003. "The Digitization of Word of Mouth: Promise and Challenges of Online Feedback Mechanisms," Management Science, INFORMS, vol. 49(10), pages 1407-1424, October.
    3. Attanasi, Giuseppe & Battigalli, Pierpaolo & Manzoni, Elena & Nagel, Rosemarie, 2019. "Belief-dependent preferences and reputation: Experimental analysis of a repeated trust game," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 341-360.
    4. Drew Fudenberg & David K. Levine, 2008. "Reputation And Equilibrium Selection In Games With A Patient Player," World Scientific Book Chapters, in: Drew Fudenberg & David K Levine (ed.), A Long-Run Collaboration On Long-Run Games, chapter 7, pages 123-142, World Scientific Publishing Co. Pte. Ltd..
    5. Regner, Tobias, 2014. "Social preferences? Google Answers!," Games and Economic Behavior, Elsevier, vol. 85(C), pages 188-209.
    6. K. Schmidt, 1999. "Reputation and Equilibrium Characterization in Repeated Games of Conflicting Interests," Levine's Working Paper Archive 626, David K. Levine.
    7. Qingmin Liu, 2006. "Information Acquisition and Reputation Dynamics," Discussion Papers 06-030, Stanford Institute for Economic Policy Research.
    8. Martin W. Cripps & George J. Mailath & Larry Samuelson, 2004. "Imperfect Monitoring and Impermanent Reputations," Econometrica, Econometric Society, vol. 72(2), pages 407-432, March.
    9. Watson, Joel, 1993. "A "Reputation" Refinement without Equilibrium," Econometrica, Econometric Society, vol. 61(1), pages 199-205, January.
    10. Zauner, Klaus G., 1999. "A Payoff Uncertainty Explanation of Results in Experimental Centipede Games," Games and Economic Behavior, Elsevier, vol. 26(1), pages 157-185, January.
    11. Kartal, Melis & Müller, Wieland & Tremewan, James, 2021. "Building trust: The costs and benefits of gradualism," Games and Economic Behavior, Elsevier, vol. 130(C), pages 258-275.
    12. Sarah C. Rice, 2012. "Reputation and Uncertainty in Online Markets: An Experimental Study," Information Systems Research, INFORMS, vol. 23(2), pages 436-452, June.
    13. Luís Cabral & Ali Hortacsu, 2004. "The Dynamics of Seller Reputation: Theory and Evidence from eBay," Working Papers 04-05, New York University, Leonard N. Stern School of Business, Department of Economics.
    14. Mailath, George J. & Samuelson, Larry, 2015. "Reputations in Repeated Games," Handbook of Game Theory with Economic Applications,, Elsevier.
    15. D. Abreu & D. Pearce, 2000. "Bargaining, Reputation and Equilibrium Selection in Repeated Games," Princeton Economic Theory Papers 00f2, Economics Department, Princeton University.
    16. Sexton, Richard J., 1991. "Game Theory: A Review With Applications To Vertical Control In Agricultural Markets," Working Papers 225865, University of California, Davis, Department of Agricultural and Resource Economics.
    17. David P. Myatt, 2005. "Instant Exit from the Asymmetric War of Attrition," Economics Series Working Papers 160, University of Oxford, Department of Economics.
    18. Jeanette Brosig & Timo Heinrich, 2011. "Reputation and Mechanism Choice in Procurement Auctions – An Experiment," Ruhr Economic Papers 0254, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    19. Melkonian, Tigran A., 1998. "Two essays on reputation effects in economic models," ISU General Staff Papers 1998010108000012873, Iowa State University, Department of Economics.
    20. Yangbo Song & Mofei Zhao, 2023. "Cooperative teaching and learning of actions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(4), pages 1289-1327, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jocore:v:33:y:1989:i:2:p:274-308. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://pss.la.psu.edu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.