Which Way to Cooperate
AbstractWe introduce a two-player, binary-choice game in which both players have a privately known incentive to enter, yet the combined surplus is highest if only one enters. Repetition of this game admits two distinct ways to cooperate: turn taking and cutoffs, which rely on the player’s private value to entry. A series of experiments highlights the role of private information in determining which mode players adopt. If an individual’s entry values vary little (e.g., mundane tasks), taking turns is likely; if these potential values are diverse (e.g., difficult tasks that differentiate individuals by skill or preferences), cutoff cooperation emerges.
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Bibliographic InfoPaper provided by Ben-Gurion University of the Negev, Department of Economics in its series Working Papers with number 1105.
Length: 44 pages
Date of creation: 2011
Date of revision:
Other versions of this item:
- C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-19 (All new papers)
- NEP-CTA-2011-12-19 (Contract Theory & Applications)
- NEP-EXP-2011-12-19 (Experimental Economics)
- NEP-GTH-2011-12-19 (Game Theory)
- NEP-HPE-2011-12-19 (History & Philosophy of Economics)
- NEP-MIC-2011-12-19 (Microeconomics)
- NEP-NET-2011-12-19 (Network Economics)
- NEP-SOC-2011-12-19 (Social Norms & Social Capital)
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