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Revisiting Strategic versus Non-strategic Cooperation

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  • Reuben, E.
  • Suetens, S.

    (Tilburg University, Center for Economic Research)

Abstract

We use a novel experimental design to disentangle strategically- and non-strategically-motivated cooperation. By using contingent responses in a repeated sequential prisoners’ dilemma with a known probabilistic end, we differentiate end-game behavior from continuation behavior within individuals while controlling for expectations. This design allows us to determine the extent to which strategically-cooperating individuals are responsible for the so-called endgame effect. Experiments with two different subject pools indicate that the most common motive for cooperation in repeated games is strategic and that the extent to which endgame effects are driven by strategically-cooperating individuals depends on the profitability of cooperation.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2009-22.

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Date of creation: 2009
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Handle: RePEc:dgr:kubcen:200922

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Web page: http://center.uvt.nl

Related research

Keywords: reputation building; strong reciprocity; conditional cooperation; strategic cooperation;

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Citations

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Cited by:
  1. Balafoutas, Loukas & Nikiforakis, Nikos, 2012. "Norm enforcement in the city: A natural field experiment," European Economic Review, Elsevier, vol. 56(8), pages 1773-1785.
  2. Petrie, Ragan & Jacobson, Sarah, 2013. "Favor Trading in Public Good Provision," Department of Economics Working Papers 2013-03, Department of Economics, Williams College.
  3. Fischbacher, Urs & Gächter, Simon & Quercia, Simone, 2012. "The behavioral validity of the strategy method in public good experiments," Journal of Economic Psychology, Elsevier, vol. 33(4), pages 897-913.
  4. Wieland Mueller & Fangfang Tan, 2011. "Who Acts More Like a Game Theorist? Group and Individual Play in a Sequential Market Game and the Effect of the Time Horizon," Working Papers who_acts_more_like_a_game, Max Planck Institute for Tax Law and Public Finance.
  5. Dreber, Anna & Fudenberg, Drew & Rand, David G., 2014. "Who cooperates in repeated games: The role of altruism, inequity aversion, and demographics," Journal of Economic Behavior & Organization, Elsevier, vol. 98(C), pages 41-55.
  6. Johnsen, Åshild A & Kvaløy, Ola, 2014. "You always meet twice: An experiment on intrinsic versus instrumental reciprocity," UiS Working Papers in Economics and Finance 2014/2, University of Stavanger.
  7. Mengel Friederike, 2009. "Never change a winning team: The effect of substitutions on success in football tournaments," Research Memorandum 027, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  8. Wright, Julian, 2013. "Punishment strategies in repeated games: Evidence from experimental markets," Games and Economic Behavior, Elsevier, vol. 82(C), pages 91-102.

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