Cooperation as a Result of Learning with Aspiration Levels
AbstractIt is shown that a win-stay, lose-hift behavior rule with endogenous aspiration levels yields cooperation in a certain class of games. The aspiration level in each round equals the current population average. The class of games includes the prisoner's dilemma and Cournot oligopoly and thus yields an explanation for cooperation and collusion.
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Bibliographic InfoPaper provided by University of Bonn, Germany in its series Bonn Econ Discussion Papers with number bgse8_2001.
Date of creation: Feb 2001
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Other versions of this item:
- Oechssler, Jorg, 2002. "Cooperation as a result of learning with aspiration levels," Journal of Economic Behavior & Organization, Elsevier, vol. 49(3), pages 405-409, November.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-04-21 (All new papers)
- NEP-EVO-2001-04-21 (Evolutionary Economics)
- NEP-GTH-2001-04-21 (Game Theory)
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