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The expected prisoner’s dilemma – With rationally arising cooperation

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  • Richard J Arend

Abstract

Currently, there is no satisfying answer to how cooperation arises rationally in a single-play prisoner’s dilemma game with complete information. When player types are known, as well as payoffs and actions, economic analysis through payoff-optimizing computation does not provide a clear path for cooperation. We propose a new form of game–the ‘expected’ game–and illustrate its implications for theory and practice based on the prisoner’s dilemma example. We prove that cooperation can be a rational choice for players in reality in such games defined by a weighted set of payoffs of two or more different reference games.

Suggested Citation

  • Richard J Arend, 2020. "The expected prisoner’s dilemma – With rationally arising cooperation," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-6, September.
    • Handle: RePEc:plo:pone00:0239299
    DOI: 10.1371/journal.pone.0239299
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    References listed on IDEAS

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    1. 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.
    2. Christian Hilbe & Štěpán Šimsa & Krishnendu Chatterjee & Martin A. Nowak, 2018. "Evolution of cooperation in stochastic games," Nature, Nature, vol. 559(7713), pages 246-249, July.
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    Cited by:

    1. Richard J. Arend, 2022. "Strategy under Ambiguity, and a New Type of Decision Dilemma," Administrative Sciences, MDPI, vol. 12(2), pages 1-17, March.
    2. Richard Arend, 2023. "Testing Behaviors in the Play of an Expected Prisoner's Dilemma," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 7(1), pages 25-33, November.

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