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Higher Intelligence Groups Have Higher Cooperation Rates in the Repeated Prisoner's Dilemma

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  • Proto, Eugenio

    (University of Glasgow)

  • Rustichini, Aldo

    (University of Minnesota)

  • Sofianos, Andis

    (Heidelberg University)

Abstract

Intelligence affects social outcomes of groups. A systematic study of the link is provided in an experiment where two groups of subjects with different levels of intelligence, but otherwise similar, play a repeated prisoner's dilemma. The initial cooperation rates are similar, it increases in the groups with higher intelligence to reach almost full cooperation, while declining in the groups with lower intelligence. The difference is produced by the cumulation of small but persistent differences in the response to past cooperation of the partner. In higher intelligence subjects, cooperation after the initial stages is immediate and becomes the default mode, defection instead requires more time. For lower intelligence groups this difference is absent. Cooperation of higher intelligence subjects is payoff sensitive, thus not automatic: in a treatment with lower continuation probability there is no difference between different intelligence groups.

Suggested Citation

  • Proto, Eugenio & Rustichini, Aldo & Sofianos, Andis, 2014. "Higher Intelligence Groups Have Higher Cooperation Rates in the Repeated Prisoner's Dilemma," IZA Discussion Papers 8499, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8499
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Cooperative smarts
      by Eric Crampton in Offsetting Behaviour on 2015-11-02 14:21:00
    2. Where do pro-social institutions come from?
      by pseudoerasmus in Pseudoerasmus on 2015-10-04 05:01:30

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    More about this item

    Keywords

    cooperation; repeated prisoner dilemma; intelligence;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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