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The Possibility of Cooperation in an n-Person Prisoners' Dilemma with Institutional Arrangements

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  • Okada, Akira

Abstract

We investigate how cooperation is possible among self-interested individuals in an n-person prisoners' dilemma from the viewpoint of institutional arrangements. Assuming that individuals create by their free consent an institutional order to enforce an agreement of cooperation, we present a noncooperative game model in which individuals have negotiations for creating an enforcement agency and also for cooperation in advance of taking actual actions. The noncooperative solution of our institutional arrangement game shows that the probability of each individual participating in negotiations monotonically decreases and converges to zero as the number of individuals becomes larger and larger. Our noncooperative game model for institutional arrangements is applied to an environmental pollution problem and some numerical results are given. Copyright 1993 by Kluwer Academic Publishers

Suggested Citation

  • Okada, Akira, 1993. "The Possibility of Cooperation in an n-Person Prisoners' Dilemma with Institutional Arrangements," Public Choice, Springer, vol. 77(3), pages 629-656, November.
  • Handle: RePEc:kap:pubcho:v:77:y:1993:i:3:p:629-56
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    References listed on IDEAS

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    1. Baik, Kyung Hwan & Kim, In-Gyu, 1997. "Delegation in contests," European Journal of Political Economy, Elsevier, vol. 13(2), pages 281-298, May.
    2. Liston-Heyes, Catherine, 2001. "Setting the Stakes in Environmental Contests," Journal of Environmental Economics and Management, Elsevier, vol. 41(1), pages 1-12, January.
    3. Schoonbeek, Lambert, 2004. "Delegation in a group-contest," European Journal of Political Economy, Elsevier, pages 263-272.
    4. Gil S. Epstein & Carsten Hefeker, 2003. "Lobbying contests with alternative instruments," Economics of Governance, Springer, vol. 4(1), pages 81-89, April.
    5. Stefan Szymanski, 2003. "The Economic Design of Sporting Contests," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1137-1187, December.
    6. Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May.
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    Cited by:

    1. Hans-Peter Weikard & Leo Wangler & Andreas Freytag, 2015. "Minimum Participation Rules with Heterogeneous Countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, pages 711-727.
    2. Rau, Holger & Clemens, Georg, 2014. "Do Leniency Policies facilitate Collusion? Experimental Evidence," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100509, Verein für Socialpolitik / German Economic Association.
    3. Kawasaki, Ryo & Muto, Shigeo, 2009. "Farsighted stability in provision of perfectly "Lumpy" public goods," Mathematical Social Sciences, Elsevier, vol. 58(1), pages 98-109, July.
    4. repec:pit:wpaper:495 is not listed on IDEAS
    5. Clemens, Georg & Rau, Holger A., 2014. "Do leniency policies facilitate collusion? Experimental evidence," DICE Discussion Papers 130, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    6. Akira Okada, 2015. "Cooperation and Institution in Games," The Japanese Economic Review, Japanese Economic Association, vol. 66(1), pages 1-32, March.
    7. Michael Kosfeld & Akira Okada & Arno Riedl, 2009. "Institution Formation in Public Goods Games," American Economic Review, American Economic Association, vol. 99(4), pages 1335-1355, September.
    8. Robert Finger & Anna Borer, 2013. "Cooperative Management of a Traditional Irrigation System in the Swiss Alps," Social Sciences, MDPI, Open Access Journal, vol. 2(1), pages 1-19, January.
    9. Iñarra García, María Elena & Larrea Jaurrieta, María Concepción & Saracho de la Torre, Ana Isabel, 2003. "The Supercore for Normal Form Games," IKERLANAK 2003-04, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
    10. Duffy, John & Xie, Huan, 2016. "Group size and cooperation among strangers," Journal of Economic Behavior & Organization, Elsevier, vol. 126(PA), pages 55-74.
    11. Akira Okada, 2008. "The second-order dilemma of public goods and capital accumulation," Public Choice, Springer, vol. 135(3), pages 165-182, June.
    12. Iñarra García, María Elena & Larrea Jaurrieta, María Concepción & Saracho de la Torre, Ana Isabel, 2003. "The Supercore for Normal Form Games," IKERLANAK 2003-04, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
    13. Róbert F. Veszteg & Erita Narhetali, 2010. "Public-good games and the Balinese," International Journal of Social Economics, Emerald Group Publishing, vol. 37(9), pages 660-675, August.
    14. Wolfgang Buchholz & Josef Falkinger & Dirk Rübbelke, 2014. "Non-Governmental Public Norm Enforcement in Large Societies as a Two-Stage Game of Voluntary Public Good Provision," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(6), pages 899-916, December.
    15. Janus, Thorsten & Lim, Jamus Jerome, 2009. "Sticks and carrots: Two incentive mechanisms supporting intra-group cooperation," Economics Letters, Elsevier, vol. 102(3), pages 177-180, March.
    16. Josef Falkinger, 2004. "Noncooperative Support of Public Norm Enforcement in Large Societies," CESifo Working Paper Series 1368, CESifo Group Munich.
    17. repec:spr:jogath:v:46:y:2017:i:1:d:10.1007_s00182-016-0527-9 is not listed on IDEAS
    18. Roman, Mihai Daniel, 2010. "A game theoretic approach of war with financial influences," MPRA Paper 38389, University Library of Munich, Germany.

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