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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. Ahmadreza Asgharpourmasouleh & Atiye Sadeghi & Ali Yousofi, 2017. "A Grounded Agent-Based Model of Common Good Production in a Residential Complex: Applying Artificial Experiments," SAGE Open, , vol. 7(4), pages 21582440177, October.
    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. Rudolf Vetschera, 2003. "Experimentation and Learning in Repeated Cooperation," Computational and Mathematical Organization Theory, Springer, vol. 9(1), pages 37-60, May.
    4. Claudius Gräbner & Wolfram Elsner & Alex Lascaux, 2021. "Trust and Social Control: Sources of Cooperation, Performance, and Stability in Informal Value Transfer Systems," Computational Economics, Springer;Society for Computational Economics, vol. 58(4), pages 1077-1102, December.
    5. Pfeuffer, Wolfgang, 2006. "Religion as a Seed Crystal for Altruistic Cooperation," Munich Dissertations in Economics 5788, University of Munich, Department of Economics.
    6. 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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