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Leaving the Prison: Permitting Partner Choice and Refusal in Prisoner's Dilemma Games

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  • Hauk, Esther

Abstract

We propose a simple rule of thumb on how to choose one's game partner that allows economic agents who care about the future to learn to cooperate in the iterated prisoner's dilemma. This rule of thumb uses partner selection strategically to reward cooperative behavior and teach defectors a lesson. This reward and punishment scheme leads to higher payoffs of non-exploitive strategies and slowly converts defectors, who are attracted by the higher payoffs, into non-exploitive types. Simulations show that the convergence to stable cooperative behavior is rather fast. Copyright 2001 by Kluwer Academic Publishers

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  • Hauk, Esther, 2001. "Leaving the Prison: Permitting Partner Choice and Refusal in Prisoner's Dilemma Games," Computational Economics, Springer;Society for Computational Economics, vol. 18(1), pages 65-87, August.
  • Handle: RePEc:kap:compec:v:18:y:2001:i:1:p:65-87
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    Cited by:

    1. Pfeuffer, Wolfgang, 2006. "Religion as a Seed Crystal for Altruistic Cooperation," Munich Dissertations in Economics 5788, University of Munich, Department of Economics.
    2. Esther Hauk, 2003. "Multiple Prisoner's Dilemma Games with(out) an Outside Option: an Experimental Study," Theory and Decision, Springer, vol. 54(3), pages 207-229, May.
    3. Michael Malcolm, 2012. "A noncooperative marriage model with remarriage," Review of Economics of the Household, Springer, vol. 10(1), pages 133-151, March.

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