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Good standing and cooperation

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  • Sergio Beraldo

Abstract

Indirect reciprocity is generally considered one of the leading mechanisms to explain how cooperation may emerge by natural selection. The basic intuition is that establishing a reputation of being a helpful individual increases the probability of being in turn helped. Two models have been proposed to describe how indirect reciprocity may work: the standing model (Sugden, 1986/2004) and the image-scoring model (Nowak and Sigmund, 1998a,b). Although there is evidence that the former model would perform better under a wide set of circumstances, it is often maintained that it requires individuals with an implausibly large capacity of processing recursive information. In this paper I argue that this is not actually the case. I then suggest that the information needed by the image-scoring model, under reasonable assumptions, may be sufficient for the standing model to work. Finally I emphasize that even if the hypothesis of indirect reciprocity is unable to give a fair account of the ecological bases of cooperation, it has inspired a deal of research precious to social sciences.
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Suggested Citation

  • Sergio Beraldo, 2011. "Good standing and cooperation," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(1), pages 79-90, March.
    • Handle: RePEc:spr:inrvec:v:58:y:2011:i:1:p:79-90
    DOI: 10.1007/s12232-011-0113-1
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    References listed on IDEAS

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    1. Axelrod, Robert, 1981. "The Emergence of Cooperation among Egoists," American Political Science Review, Cambridge University Press, vol. 75(2), pages 306-318, June.
    2. Tim Clutton-Brock, 2009. "Cooperation between non-kin in animal societies," Nature, Nature, vol. 462(7269), pages 51-57, November.
    3. Bolton, Gary E. & Katok, Elena & Ockenfels, Axel, 2005. "Cooperation among strangers with limited information about reputation," Journal of Public Economics, Elsevier, vol. 89(8), pages 1457-1468, August.
    4. Sergio Beraldo & Robert Sugden, 2010. "The emergence of reciprocally beneficial cooperation," ICER Working Papers 18-2010, ICER - International Centre for Economic Research.
    5. M.A. Nowak & K. Sigmund, 1998. "Evolution of Indirect Reciprocity by Image Scoring/ The Dynamics of Indirect Reciprocity," Working Papers ir98040, International Institute for Applied Systems Analysis.
    6. Martin A. Nowak & Karl Sigmund, 2005. "Evolution of indirect reciprocity," Nature, Nature, vol. 437(7063), pages 1291-1298, October.
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    Cited by:

    1. Sergio Beraldo & Luigino Bruni, 2011. "The semantics of market and civil society: a bird’s eye view of Robert Sugden’s contribution to social sciences," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(1), pages 1-8, March.

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    More about this item

    Keywords

    Cooperation; Indirect reciprocity; Good standing; Image scoring; C73; L14;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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