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Cooperation as a Result of Learning with Aspiration Levels

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Author Info
Jörg Oechssler

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Abstract

It 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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File URL: ftp://web.bgse.uni-bonn.de/pub/RePEc/bon/bonedp/bgse8_2001.pdf
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Publisher Info
Paper provided by University of Bonn, Germany in its series Bonn Econ Discussion Papers with number bgse8_2001.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 6
Date of creation: Feb 2001
Date of revision:
Handle: RePEc:bon:bonedp:bgse8_2001

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Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany
Fax: +49 228 73 9221
Web page: http://www.bgse.uni-bonn.de/index.php?id=494

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Related research
Keywords: cooperation

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Find related papers by JEL classification:
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

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  1. Steffen Huck & Brian Wallace, 2002. "Reciprocal strategies and aspiration levels in a Cournot-Stackelberg experiment," Economics Bulletin, Economics Bulletin, vol. 3, pages 1-7. [Downloadable!]
  2. Carlo Altavilla & Luigi Luini & Patrizia Sbriglia, 2005. "Social Learning in Market Games," Labsi Experimental Economics Laboratory University of Siena 003, University of Siena. [Downloadable!]
    Other versions:
  3. Steffen Huck & Philippe Jehiel, 2004. "Public statistics and private experience : Varying feedback information in a take or pass game," Levine's Bibliography 122247000000000733, UCLA Department of Economics. [Downloadable!]
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This page was last updated on 2008-10-8.


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