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Cooperation and Wealth

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  • Stark, Oded

    (University of Bonn and University of Vienna)

Abstract

We calculate the equilibrium fraction of cooperators in a population in which payoffs accrue from playing a single-shot prisoner’s dilemma game. Individuals who are hardwired as cooperators or defectors are randomly matched into pairs, and cooperators are able to perfectly find out the type of a partner to a game by incurring a recognition cost. We show that the equilibrium fraction of cooperators relates negatively to the population’s level of wealth.

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File URL: http://www.ihs.ac.at/publications/eco/es-123.pdf
File Function: First version, 2002
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Bibliographic Info

Paper provided by Institute for Advanced Studies in its series Economics Series with number 123.

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Length: 10 pages
Date of creation: Oct 2002
Date of revision:
Handle: RePEc:ihs:ihsesp:123

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Keywords: Equilibrium fraction of cooperators; Population's level of wealth; Single-shot prisoner's dilemma game;

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  1. Ken Binmore, 1998. "Game Theory and the Social Contract - Vol. 2: Just Playing," MIT Press Books, The MIT Press, edition 1, volume 2, number 0262024446, December.
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Cited by:
  1. SAVVATEEV, Alexei & STARK, Oded, 2005. "An evolutionary explanation for the propensity to migrate," CORE Discussion Papers 2005038, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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