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Abstract

We study interactions with different durations and termination rules in a (quasi) continuous-time prisoner’s dilemma experiment. We find that cooperation is easier to achieve and sustain with deterministic horizons than with stochastic ones; end-game effects emerge, but subjects postpone them with experience; longer duration helps cooperation. Static theories for continuous-time games cannot simultaneously account for these findings and miss the evolution of behavior across supergames. We propose a simple model – based on the replicator dynamics – that proves consistent with this evidence. The analysis of strategies and an additional treatment lend further support to the proposed explanation.

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Bibliographic Info

Paper provided by Einaudi Institute for Economic and Finance (EIEF) in its series EIEF Working Papers Series with number 1116.

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Length: 60 pages
Date of creation: 2011
Date of revision: Jan 2013
Handle: RePEc:eie:wpaper:1116

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Find related papers by JEL classification:

• C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
• C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
• C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
• C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
• D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances

This paper has been announced in the following NEP Reports:

• NEP-ALL-2012-01-25 (All new papers)
• NEP-CBE-2012-01-25 (Cognitive & Behavioural Economics)
• NEP-EVO-2012-01-25 (Evolutionary Economics)
• NEP-EXP-2012-01-25 (Experimental Economics)
• NEP-SOC-2012-01-25 (Social Norms & Social Capital)

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