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Cooperation and Punishment

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Author Info
Jonathan P. Thomas (University of St. Andrews)
Robert Evans (University of Cambridge)

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Abstract

We show that, in repeated common interest games without discounting, strong `perturbation implies efficiency' results require that the perturbations must include strategies which are `draconian' in the sense that they are prepared to punish to the maximum extent possible. Moreover, there is a draconian strategy whose presence in the perturbations guarantees that any equilibrium is efficient. We also argue that the results of Anderlini and Sabourian (1995) using perturbation strategies which are cooperative (and hence non-draconian) are not due to computability per se but to the further restrictions they impose on allowable beliefs.

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File URL: http://129.3.20.41/eps/game/papers/0004/0004002.pdf
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Publisher Info
Paper provided by EconWPA in its series Game Theory and Information with number 0004002.

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Length: 22 pages
Date of creation: 13 Jun 2000
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Handle: RePEc:wpa:wuwpga:0004002

Note: Type of Document - Acrobat PDF; prepared on IBM PC; pages: 22 ; figures: included. pdf file, prepared from sci word
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Web page: http://129.3.20.41

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Related research
Keywords: common interests; repeated games; cooperation; computability; reputation;

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Find related papers by JEL classification:
C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Sorin, Sylvain, 1999. "Merging, Reputation, and Repeated Games with Incomplete Information," Games and Economic Behavior, Elsevier, vol. 29(1-2), pages 274-308, October. [Downloadable!] (restricted)
  2. Aumann, Robert J. & Sorin, Sylvain, 1989. "Cooperation and bounded recall," Games and Economic Behavior, Elsevier, vol. 1(1), pages 5-39, March. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Louis Putterman & Christopher M. Anderson, 2003. "Do Non-strategic Sanctions Obey the Law of Demand? The Demand for Punishment in the Voluntary Contribution Mechanism," Working Papers 2003-15, Brown University, Department of Economics. [Downloadable!]
    Other versions:
  2. Herbert Gintis, 2000. "Strong Reciprocity and Human Sociality," Working Papers 2000-02, University of Massachusetts Amherst, Department of Economics. [Downloadable!]
  3. Samuel Bowles & Herbert Gintis, 2002. "Social Capital and Community Governance," Economic Journal, Royal Economic Society, vol. 112(483), pages 419-436, November. [Downloadable!] (restricted)
    Other versions:
  4. Oliver Bochet & Talbot Page & Louis Putterman, 2002. "Communication and Punishment in Voluntary Contribution Experiments," Working Papers 2002-29, Brown University, Department of Economics. [Downloadable!]
    Other versions:
  5. Chun Lei Yang & Ching Syang Jack Yue, 2004. "The Rise of Cooperation in Correlated Matching Prisoners Dilemma: An Experiment," Levine's Bibliography 122247000000000097, UCLA Department of Economics. [Downloadable!]
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This page was last updated on 2009-11-5.


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