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Cooperation by Indirect Revelation through Strategic Behavior

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  • Lapson, Robert

Abstract

The paper deals with a one-shot prisoners' dilemma when the players have an option to go to court but cannot verify their testimonies. To solve the problem a second stage is added to a game. At the first stage the players are involved in the prisoners' dilemma and at the second stage they play another game in which their actions are verifiable. In such a setup the information about the actions chosen at the prisoners' dilemma stage can be revealed through strategic behavior of the players during second stage. A mechanism for such revelation in the extended game is described. It provides an existence of a unique sequential equilibrium, which may be obtained by an iterative elimination of dominated strategies and has a number of desirable properties.

Suggested Citation

  • Lapson, Robert, 1994. "Cooperation by Indirect Revelation through Strategic Behavior," International Journal of Game Theory, Springer;Game Theory Society, vol. 23(1), pages 65-74.
    • Handle: RePEc:spr:jogath:v:23:y:1994:i:1:p:65-74
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