On the Size and Structure of Group Cooperation
AbstractThis paper examines characteristics of cooperative behavior in a repeated, n-person, continuous action generalization of a Prisoner's Dilemma game. When time preferences are heterogeneous and bounded away from one, how "much" cooperation can be achieved by an ongoing group? How does group cooperation vary with the group's size and structure? For an arbitrary distribution of discount factors, we characterize the maximal average cooperation (MAC) likelihood of this game. The MAC likelihood is the highest average level of cooperation, over all stationary subgame perfect equilibrium paths, that the group can achieve. The MAC likelihood is shown to be increasing in monotone shifts, and decreasing in mean preserving spreads, of the distribution of discount factors. The latter suggests that more heterogeneous groups are less cooperative on average. Finally, we establish weak conditions under which the MAC likelihood exhibits increasing returns to scale when discounting is heterogeneous. That is, larger groups are more cooperative, on average, than smaller ones. By contrast, when the group has a common discount factor, the MAC likelihood is invariant to group size.
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Bibliographic InfoPaper provided by EconWPA in its series Game Theory and Information with number 0209005.
Length: 31 pages
Date of creation: 30 Sep 2002
Date of revision:
Note: Type of Document - pdf; prepared on PC; to print on postscript; pages: 31 ; figures: included ;
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Repeated games; maximal average cooperation likelihood; heterogeneous discount factors; returns to scale;
Other versions of this item:
- Haag, Matthew & Roger Lagunoff, 2003. "On the Size and Structure of Group Cooperation," Royal Economic Society Annual Conference 2003 97, Royal Economic Society.
- Haag, Matthew & Lagunoff, Roger, 2002. "On the Size and Structure of Group Cooperation," The Warwick Economics Research Paper Series (TWERPS) 650, University of Warwick, Department of Economics.
- Matthew Haag & Roger Lagunoff, 2010. "On the Size and Structure of Group cooperation," Levine's Working Paper Archive 506439000000000043, David K. Levine.
- Matthew Haag & Roger Lagunoff, 2003. "On the Size and Structure of Group Cooperation," Working Papers 2003.54, Fondazione Eni Enrico Mattei.
- Matthew Haag & Roger Lagunoff, 2002. "On the Size and Structure of Group Cooperation," Wallis Working Papers WP33, University of Rochester - Wallis Institute of Political Economy.
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- D7 - Microeconomics - - Analysis of Collective Decision-Making
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-10-08 (All new papers)
- NEP-GTH-2002-10-08 (Game Theory)
- NEP-MIC-2002-10-11 (Microeconomics)
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.:
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