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Multiple Prisoner's Dilemma Games with(out) an Outside Option: an Experimental Study

  • Esther Hauk

    ()

Experiments in which subjects play simultaneously several finite prisoner's dilemma supergames with and without an outside option reveal that: (i) subjects use probabilistic start and endeffect behaviour, (ii) the freedom to choose whether to play the prisoner's dilemma game enhances cooperation, (iii) if the payoff for simultaneous defection is negative, subjects' tendency to avoid losses leads them to cooperate; while this tendency makes them stick to mutual defection if its payoff is positive.

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File URL: http://hdl.handle.net/10.1023/A:1027385819400
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Article provided by Springer in its journal Theory and Decision.

Volume (Year): 54 (2003)
Issue (Month): 3 (May)
Pages: 207-229

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Handle: RePEc:kap:theord:v:54:y:2003:i:3:p:207-229
DOI: 10.1023/A:1027385819400
Contact details of provider: Web page: http://www.springer.com

Order Information: Web: http://www.springer.com/economics/economic+theory/journal/11238/PS2

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  1. Ashlock, Daniel & Smucker, Mark D. & Stanley, E. Ann & Tesfatsion, Leigh S., 1996. "Preferential Partner Selection in an Evolutionary Study of Prisoner's Dilemma," Staff General Research Papers Archive 1687, Iowa State University, Department of Economics.
  2. Fudenberg, Drew & Levine, David, 1995. "Consistency and Cautious Fictitious Play," Scholarly Articles 3198694, Harvard University Department of Economics.
  3. 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.
  4. Gérard P. Cachon & Colin F. Camerer, 1996. "Loss-Avoidance and Forward Induction in Experimental Coordination Games," The Quarterly Journal of Economics, Oxford University Press, vol. 111(1), pages 165-194.
  5. William A. Brock & Cars H. Hommes, 1995. "Rational Routes to Randomness," Working Papers 95-03-029, Santa Fe Institute.
  6. Albert Marcet & Juan P. Nicolini, 2003. "Recurrent Hyperinflations and Learning," American Economic Review, American Economic Association, vol. 93(5), pages 1476-1498, December.
  7. Esther Hauk, 1999. "Multiple prisoner's dilemma games with (out) an outside option: An experimental study," Economics Working Papers 391, Department of Economics and Business, Universitat Pompeu Fabra.
  8. Andreoni, J. & Miller, J.H., 1991. "Rational Cooperative in the Finitely Repeated Prisoner's Dilemma: Experimental Evidence," Working papers 9102, Wisconsin Madison - Social Systems.
  9. Stanley, E.A. & Ashlock, Daniel & Tesfatsion, Leigh, 1994. "Iterated Prisoner's Dilemma with Choice and Refusal of Partners," Staff General Research Papers Archive 11180, Iowa State University, Department of Economics.
  10. Leigh TESFATSION, 1995. "A Trade Network Game With Endogenous Partner Selection," Economic Report 36, Iowa State University Department of Economics.
  11. Erev, Ido & Roth, Alvin E, 1998. "Predicting How People Play Games: Reinforcement Learning in Experimental Games with Unique, Mixed Strategy Equilibria," American Economic Review, American Economic Association, vol. 88(4), pages 848-81, September.
  12. Parikshit Ghosh & Debraj Ray, 1996. "Cooperation in Community Interaction Without Information Flows," Review of Economic Studies, Oxford University Press, vol. 63(3), pages 491-519.
  13. 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.
  14. Brock, W.A., 1995. "A Rational Route to Randomness," Working papers 9530, Wisconsin Madison - Social Systems.
  15. Esther Hauk & Rosemarie Nagel, 2000. "Choice of partners in multiple two-person prisoner's dilemma games: An experimental study," Economics Working Papers 487, Department of Economics and Business, Universitat Pompeu Fabra.
  16. Selten, Reinhard & Stoecker, Rolf, 1986. "End behavior in sequences of finite Prisoner's Dilemma supergames A learning theory approach," Journal of Economic Behavior & Organization, Elsevier, vol. 7(1), pages 47-70, March.
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