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Monitoring institutions in indefinitely repeated games

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  • G. Camera
  • M. Casari

Abstract

Does monitoring past conduct facilitate intertemporal cooperation? We designed an experiment characterized by strategic uncertainty and multiple equilibria where coordinating on the efficient outcome is a challenge. Participants, interacting anonymously in a group, could pay a cost either to obtain information about their counterparts, or to create a freely available public record of individual conduct. Both monitoring institutions were actively employed. However, groups were unable to attain higher levels of cooperation compared to a treatment without monitoring. Information about past conduct alone thus appears to be ineffective in overcoming coordination challenges.

Suggested Citation

  • G. Camera & M. Casari, 2015. "Monitoring institutions in indefinitely repeated games," Working Papers wp1046, Dipartimento Scienze Economiche, Universita' di Bologna.
  • Handle: RePEc:bol:bodewp:wp1046
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    Cited by:

    1. Kamei, Kenju, 2020. "Voluntary disclosure of information and cooperation in simultaneous-move economic interactions," Journal of Economic Behavior & Organization, Elsevier, vol. 171(C), pages 234-246.
    2. Guilherme Carmona, 2021. "On the optimality of monetary trading," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(3), pages 1121-1160, April.
    3. Yan Chen & Catherine Eckel, 2018. "Introduction to the Symposium in Experimental Economics in memory of John Van Huyck," Experimental Economics, Springer;Economic Science Association, vol. 21(3), pages 481-486, September.
    4. Kenju Kamei & Artem Nesterov, 2020. "Endogenous Monitoring through Gossiping in an Infinitely Repeated Prisoner’s Dilemma Game: Experimental Evidence," Working Papers 2020_02, Durham University Business School.
    5. Maria Bigoni & Gabriele Camera & Marco Casari, 2019. "Cooperation among strangers with and without a monetary system," Working Papers 19-01, Chapman University, Economic Science Institute.
    6. Yvan I. Russell & Yana Stoilova & Aura-Adriana Dosoftei, 2020. "Cooperation through Image Scoring: A Replication," Games, MDPI, vol. 11(4), pages 1-15, November.
    7. Kamei, Kenju & Kobayashi, Hajime & Tse, Tiffany Tsz Kwan, 2022. "Observability of partners’ past play and cooperation: Experimental evidence," Economics Letters, Elsevier, vol. 210(C).

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    More about this item

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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