"Social Norms and Voluntary Cooperations"(in Japanese)
AbstractUnlike the ordinary repeated games, in the real world, people can run away after cheating. In this paper we construct a social game, in which players can repeat Prisoners' Dilemma only if both players agree to continue the partnership. We investigate how a social sanction prevents moral hazard in such a voluntary relationship. We have three conclusions. First, it is possible to enforce voluntary long-term cooperation by trust-building. Second, the trust-building periods can be shortened under diverse strategy distributions. Third, if there is a reference letter system which conveys information that a partnership ended by an unavoidable cause, then the trust-building periods can be shortened as well.
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Bibliographic InfoPaper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE J-Series with number CIRJE-J-172.
Length: 21 pages
Date of creation: Jan 2007
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-02-10 (All new papers)
- NEP-CDM-2007-02-10 (Collective Decision-Making)
- NEP-GTH-2007-02-10 (Game Theory)
- NEP-SOC-2007-02-10 (Social Norms & Social Capital)
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