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Asymmetric Payoffs in Simultaneous and Sequential Prisoner's Dilemma Games

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Author Info
T.K. Ahn () (Florida State University)
Myungsuk Lee () (Sung Kyun Kwan University)
Lore Ruttan () (Emory University)
James M. Walker () (Indiana University Bloomington)

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Abstract

We 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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Paper provided by Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington in its series Caepr Working Papers with number 2006-003.

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Length: 33 pages
Date of creation: Aug 2005
Date of revision: Aug 2006
Handle: RePEc:inu:caeprp:2006003

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Keywords: cooperation; prisoner’s dilemma; heterogeneity; exit option;

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