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Indirect Reciprocity in Cyclical Networks - An Experimental Study -

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Ben Greiner
Maria Vittoria Levati

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Abstract

A cyclical network of indirect reciprocity is derived organizing 3- or 6-person groups into rings of social interaction where the first individual can help the second, the second the third, and so on till the last, who in return can help the first. Mutual cooperation is triggered by assuming that what one passes on to the next is multiplied by a factor of 3. Participants play repeatedly either in a partner or in a stranger condition, and take their decisions first simultaneously and then sequentially. We find that pure indirect reciprocity enables mutual cooperation although strategic considerations and group size are important too.

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Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2003-15.

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Length: 33 pages
Date of creation: Jun 2003
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Handle: RePEc:esi:discus:2003-15

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Find related papers by JEL classification:
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
D3 - Microeconomics - - Distribution

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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Yiping Ma & Sebastian Gonçalves & Sylvain Mignot & Jean-Pierre Nadal & Mirta B. Gordon, 2009. "Cycles of cooperation and free-riding in social systems," Working Papers hal-00349642_v1, HAL. [Downloadable!]
  2. Giuseppe Danese & Luigi Mittone, 2008. "Reciprocity, Exchange and Redistribution. An experimental investigation inspired by Karl Polanyi’s The Economy as Instituted Process," CEEL Working Papers 0803, Computable and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia. [Downloadable!]
  3. Werner Güth & M. Vittoria Levati & Matthias Sutter & Eline van der Heijden, 2006. "Leading by example with and without exclusion power in voluntary contribution experiments," Papers on Strategic Interaction 2006-35, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
    Other versions:
  4. Luca Stanca & Luigino Bruni & Marco Mantovani, 2009. "The Effect of Motivations on Social Indirect Reciprocity: an Experimental Analysis," Working Papers 169, University of Milano-Bicocca, Department of Economics, revised Aug 2009. [Downloadable!]
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