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Waiting To Cooperate?

Author

Listed:
  • Todd R. Kaplan

    () (University of Exeter, University of Haifa)

  • Bradley J. Ruffle

    () (Wilfrid Laurier University, Ben-Gurion University)

  • Ze’ev Shtudiner

    () (Ariel University)

Abstract

Sometimes cooperation between two parties requires exactly one to cede to the other. If the decisions whether to cede are made simultaneously, then neither or both may acquiesce leading to an inefficient outcome. However, inefficiency may be avoided if a party can wait to see what the other does. We experimentally test whether adding a waiting option to such a two-player cooperation game enhances cooperation. Although subjects cede less overall with the waiting option, we show that they coordinate more and consequently achieve higher profits. Yet, a dark side overhangs waiting: the least cooperative pairs do worse with this option. They wait not to facilitate coordination but to disguise their entry.

Suggested Citation

  • Todd R. Kaplan & Bradley J. Ruffle & Ze’ev Shtudiner, 2013. "Waiting To Cooperate?," Working Papers 1314, Ben-Gurion University of the Negev, Department of Economics.
    • Handle: RePEc:bgu:wpaper:1314
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    References listed on IDEAS

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    5. Todd R. Kaplan & Bradley J. Ruffle, 2012. "Which Way to Cooperate," Economic Journal, Royal Economic Society, vol. 122(563), pages 1042-1068, September.
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    11. repec:cup:apsrev:v:86:y:1992:i:02:p:404-417_08 is not listed on IDEAS
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    1. repec:spr:jogath:v:47:y:2018:i:3:d:10.1007_s00182-018-0633-y is not listed on IDEAS

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    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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