Asymmetric Payoffs in Simultaneous and Sequential Prisoner's Dilemma Games
AbstractWe investigate the role of payoff asymmetry in laboratory prisoner’s dilemma games. Symmetric and Asymmetric games are examined in simultaneous and sequential settings. In the asymmetric/sequential games, we study the impact of having payoff advantaged players moving either first or second. Asymmetry reduces the rates of cooperation in simultaneous games. In sequential games, asymmetry interacts with order of play such that the rate of cooperation is highest when payoff disadvantaged players move first. The presence of an exit option increases cooperation by the players who choose to play the game when payoffs are symmetric, or when payoffs are asymmetric and the payoff disadvantaged player moves first.
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Bibliographic InfoPaper provided by Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington in its series Caepr Working Papers with number 2006-003.
Length: 33 pages
Date of creation: Aug 2005
Date of revision: Aug 2006
cooperation; prisoner’s dilemma; heterogeneity; exit option;
Other versions of this item:
- T. Ahn & Myungsuk Lee & Lore Ruttan & James Walker, 2007. "Asymmetric payoffs in simultaneous and sequential prisoner’s dilemma games," Public Choice, Springer, vol. 132(3), pages 353-366, September.
- NEP-ALL-2006-09-23 (All new papers)
- NEP-CBE-2006-09-23 (Cognitive & Behavioural Economics)
- NEP-EXP-2006-09-23 (Experimental Economics)
- NEP-GTH-2006-09-23 (Game Theory)
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