Cooperation in a one-shot Prisoners' Dilemma
In this paper, we model social interactions which are characteristic of large economies. The key properties of this model are: (1) agents are randomly matched over time to engage in a Prisoners' Dilemma; (2) each agent routinely interacts with a proper subset of the other agents; and (3) each agent has highly imperfect information about the past conduct of other agents. For this setting, we show the optimality of a rule of thumb which does not discriminate between encounters with agents that one regularly meets and encounters with agents that one never expects to meet again. This rule of thumb generates cooperative behavior in all encounters. Journal of Economic Literature Classification Numbers: C72, D74.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Basu, Kaushik, 1987. "Modeling finitely-repeated games with uncertain termination," Economics Letters, Elsevier, vol. 23(2), pages 147-151.
- DANIEL B. KLElN, 1992. "Promise Keeping In The Great Society: A Model Of Credit Information Sharing," Economics and Politics, Wiley Blackwell, vol. 4(2), pages 117-136, 07.
- David Kreps & Paul Milgrom & John Roberts & Bob Wilson, 2010.
"Rational Cooperation in the Finitely Repeated Prisoners' Dilemma,"
Levine's Working Paper Archive
239, David K. Levine.
- Kreps, David M. & Milgrom, Paul & Roberts, John & Wilson, Robert, 1982. "Rational cooperation in the finitely repeated prisoners' dilemma," Journal of Economic Theory, Elsevier, vol. 27(2), pages 245-252, August.
- Paul R. Milgrom & Douglass C. North & Barry R. Weingast, 1990. "The Role Of Institutions In The Revival Of Trade: The Law Merchant, Private Judges, And The Champagne Fairs," Economics and Politics, Wiley Blackwell, vol. 2(1), pages 1-23, 03.
- Benoit, Jean-Pierre, 1988. "A non-equilibrium analysis of the finitely-repeated prisoner's dilemma," Mathematical Social Sciences, Elsevier, vol. 16(3), pages 281-287, December.
- Neyman, Abraham, 1985. "Bounded complexity justifies cooperation in the finitely repeated prisoners' dilemma," Economics Letters, Elsevier, vol. 19(3), pages 227-229.
- Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
- Rosenthal, R W, 1979. "Sequences of Games with Varying Opponents," Econometrica, Econometric Society, vol. 47(6), pages 1353-66, November.
- repec:oup:restud:v:59:y:1992:i:1:p:63-80 is not listed on IDEAS
- Harrington, Joseph Jr., 1987. "Finite rationalizability and cooperation in the finitely repeated Prisoners' Dilemma," Economics Letters, Elsevier, vol. 23(3), pages 233-237.
When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:8:y:1995:i:2:p:364-377. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.