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Time Horizon and Cooperation in Continuous Time

Listed author(s):
  • Maria Bigoni
  • Marco Casari
  • Andrzej Skrzypacz
  • Giancarlo Spagnolo

We study social dilemmas in (quasi‐) continuous‐time experiments, comparing games with different durations and termination rules. We discover a stark qualitative contrast in behavior in continuous time as compared to previously studied behavior in discrete‐time games: cooperation is easier to achieve and sustain with deterministic horizons than with stochastic ones, and end‐game effects emerge, but subjects postpone them with experience. Analysis of individual strategies provides a basis for a simple reinforcement learning model that proves to be consistent with this evidence. An additional treatment lends further support to this explanation.

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Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 83 (2015)
Issue (Month): (03)
Pages: 587-616

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Handle: RePEc:wly:emetrp:v:83:y:2015:i::p:587-616
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