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Cooperative Behavior and the Frequency of Social Interaction

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  • John Duffy
  • Jack Ochs

Abstract

We report results from an experiment that examines play in an indefinitely repeated, 2-player Prisoner’s Dilemma game. Each experimental session involves N subjects and a sequence of indefinitely repeated games. The main treatment consists of whether agents are matched in fixed pairings or matched randomly in each indefinitely repeated game. Within the random matching treatment, we vary the information that players have about their opponents. Contrary to a theoretical possibility suggested by Kandori (1992), a cooperative norm does not emerge in the treatments where players are matched randomly. On the other hand, in the fixed pairings treatment, the evidence suggests that a cooperative norm does emerge as players gain more experience.

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Paper provided by David K. Levine in its series Levine's Working Paper Archive with number 122247000000000060.

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Date of creation: 02 Mar 2004
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Handle: RePEc:cla:levarc:122247000000000060

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  2. Gary E. Bolton & Elena Katok & Axel Ockenfels, 2003. "How Effective are Electronic Reputation Mechanisms? An Experimental Investigation," Working Paper Series in Economics, University of Cologne, Department of Economics 3, University of Cologne, Department of Economics.
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  5. Andreoni, J. & Miller, J.H., 1991. "Rational Cooperative in the Finitely Repeated Prisoner's Dilemma: Experimental Evidence," Working papers, Wisconsin Madison - Social Systems 9102, Wisconsin Madison - Social Systems.
  6. Camerer, Colin & Weigelt, Keith, 1988. "Experimental Tests of a Sequential Equilibrium Reputation Model," Econometrica, Econometric Society, Econometric Society, vol. 56(1), pages 1-36, January.
  7. Pedro Dal B�, 2005. "Cooperation under the Shadow of the Future: Experimental Evidence from Infinitely Repeated Games," American Economic Review, American Economic Association, American Economic Association, vol. 95(5), pages 1591-1604, December.
  8. Michi Kandori, 2010. "Social Norms and Community Enforcement," Levine's Working Paper Archive 630, David K. Levine.
  9. Ellison, Glenn, 1994. "Cooperation in the Prisoner's Dilemma with Anonymous Random Matching," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 61(3), pages 567-88, July.
  10. Paul R. Milgrom & Douglass C. North & Barry R. Weingast, 1990. "The Role Of Institutions In The Revival Of Trade: The Law Merchant, Private Judges, And The Champagne Fairs," Economics and Politics, Wiley Blackwell, Wiley Blackwell, vol. 2(1), pages 1-23, 03.
  11. Fischbacher, Urs & Gachter, Simon & Fehr, Ernst, 2001. "Are people conditionally cooperative? Evidence from a public goods experiment," Economics Letters, Elsevier, Elsevier, vol. 71(3), pages 397-404, June.
  12. Masaki Aoyagi & Guillaume R. Frechette, 2004. "Collusion in Repeated Games with Imperfect Public Monitoring," Levine's Bibliography 122247000000000127, UCLA Department of Economics.
  13. Nick Feltovich, 2003. "Nonparametric Tests of Differences in Medians: Comparison of the Wilcoxon–Mann–Whitney and Robust Rank-Order Tests," Experimental Economics, Springer, Springer, vol. 6(3), pages 273-297, November.
  14. Bolton, Gary E. & Katok, Elena & Ockenfels, Axel, 2005. "Cooperation among strangers with limited information about reputation," Journal of Public Economics, Elsevier, Elsevier, vol. 89(8), pages 1457-1468, August.
  15. Greif, Avner, 1989. "Reputation and Coalitions in Medieval Trade: Evidence on the Maghribi Traders," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 49(04), pages 857-882, December.
  16. Palfrey, Thomas R & Rosenthal, Howard, 1994. "Repeated Play, Cooperation and Coordination: An Experimental Study," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 61(3), pages 545-65, July.
  17. Van Huyck, John B. & Wildenthal, John M. & Battalio, Raymond C., 2002. "Tacit Cooperation, Strategic Uncertainty, and Coordination Failure: Evidence from Repeated Dominance Solvable Games," Games and Economic Behavior, Elsevier, Elsevier, vol. 38(1), pages 156-175, January.
  18. Aoyagi, Masaki & Fréchette, Guillaume, 2009. "Collusion as public monitoring becomes noisy: Experimental evidence," Journal of Economic Theory, Elsevier, Elsevier, vol. 144(3), pages 1135-1165, May.
  19. Charalambos D Aliprantis & Gabriele Camera & Daniela Puzzello, 2007. "Contagion Equilibria in a Monetary Model," Econometrica, Econometric Society, Econometric Society, vol. 75(1), pages 277-282, 01.
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