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

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Cited by:
  1. Loukas Balafoutas & Nikos Nikiforakis, 2012. "Norm enforcement in the city: A natural field experiment," Working Papers 2012-12, Faculty of Economics and Statistics, University of Innsbruck.
  2. Sarah Jacobson & Ragan Petrie, 2010. "Favor Trading in Public Good Provision," Department of Economics Working Papers 2010-19, Department of Economics, Williams College, revised Apr 2013.
  3. 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.
  4. Urs Fischbacher & Simon Gaechter, 2009. "The behavioral validity of the strategy method in public good experiments," Discussion Papers 2009-25, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  5. Dreber-Almenberg, Anna & Fudenberg, Drew & Rand, David G., 2014. "Who cooperates in repeated games: The role of altruism, inequity aversion, and demographics," Scholarly Articles 11923167, Harvard University Department of Economics.
  6. 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," Vienna Economics Papers 1111, University of Vienna, Department of Economics.
  7. 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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