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Correlation, Learning and the Robustness of Cooperation

  • Nicola Dimitri

    (Universita di Siena)

Registered author(s):

    In the stage game Prisoner's Dilemna one line of research which is pursued to justify the cooperative outcome is based upton some idea of correlation. This paper aims at testing whether correlation could support a cooperative behavior in the long run, by embedding the infinitely repeataed game within a simple evolutionary framework. In particular, the main theorem states that just two born cooperative agents might remain cooperative forever with strictly positive probability. This robustness result appears to be particularly strong since the model allows cooperative agents to switch strategy and start defecting from a certain time onward, but not vice versa. (Copyright: Elsevier)

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    File URL: http://dx.doi.org/10.1006/redy.1999.0078
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    Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

    Volume (Year): 3 (2000)
    Issue (Month): 2 (April)
    Pages: 311-329

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    Handle: RePEc:red:issued:v:3:y:2000:i:2:p:311-329
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    1. Robert J. Aumann, 2010. "Correlated Equilibrium as an expression of Bayesian Rationality," Levine's Working Paper Archive 661465000000000377, David K. Levine.
    2. David Kreps & Paul Milgrom & John Roberts & Bob Wilson, 2010. "Rational Cooperation in the Finitely Repeated Prisoners' Dilemma," Levine's Working Paper Archive 239, David K. Levine.
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    10. Binmore, Kenneth G. & Samuelson, Larry, 1992. "Evolutionary stability in repeated games played by finite automata," Journal of Economic Theory, Elsevier, vol. 57(2), pages 278-305, August.
    11. Glen Ellison, 2010. "Learning, Local Interaction, and Coordination," Levine's Working Paper Archive 391, David K. Levine.
    12. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
    13. AUMANN, Robert J., . "Subjectivity and correlation in randomized strategies," CORE Discussion Papers RP 167, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    15. Akihiko Matsui, 1989. "Cheap Talk and Cooperation in the Society," Discussion Papers 848, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    16. Neyman, Abraham, 1985. "Bounded complexity justifies cooperation in the finitely repeated prisoners' dilemma," Economics Letters, Elsevier, vol. 19(3), pages 227-229.
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