Cooperative Strategies in Groups of Strangers: An Experiment
AbstractWe study cooperation in four-person economies of indefinite duration. Subjects interact anonymously playing a prisoner’s dilemma. We identify and characterize the strategies employed at the aggregate and at the individual level. We find that (i) grim trigger well describes aggregate play, but not individual play; (ii) individual behavior is persistently heterogeneous; (iii) coordination on cooperative strategies does not improve with experience; (iv) systematic defection does not crowd-out systematic cooperation.
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Bibliographic InfoPaper provided by Purdue University, Department of Economics in its series Purdue University Economics Working Papers with number 1237.
Date of creation: Jun 2010
Date of revision:
repeated games; equilibrium selection; prisoners’ dilemma; random matching;
Find related papers by JEL classification:
- C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-03 (All new papers)
- NEP-CBE-2010-09-03 (Cognitive & Behavioural Economics)
- NEP-EVO-2010-09-03 (Evolutionary Economics)
- NEP-EXP-2010-09-03 (Experimental Economics)
- NEP-GTH-2010-09-03 (Game Theory)
- NEP-SOC-2010-09-03 (Social Norms & Social Capital)
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