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Monitoring institutions in indefinitely repeated games

Author

Listed:
  • Gabriele Camera

    (Chapman University and University of Basel)

  • Marco Casari

    (University of Bologna)

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

  • Gabriele Camera & Marco Casari, 2017. "Monitoring institutions in indefinitely repeated games," Working Papers 17-12, Chapman University, Economic Science Institute.
    • Handle: RePEc:chu:wpaper:17-12
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.
    3. Kamei, Kenju & Kobayashi, Hajime & Tse, Tiffany Tsz Kwan, 2022. "Observability of partners’ past play and cooperation: Experimental evidence," Economics Letters, Elsevier, vol. 210(C).
    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. 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.
    6. 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.
    7. Yvan I. Russell & Yana Stoilova & Aura-Adriana Dosoftei, 2020. "Cooperation through Image Scoring: A Replication," Games, MDPI, vol. 11(4), pages 1-15, November.

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    More about this item

    Keywords

    coordination; information; equilibrium selection; conventions; social dilemmas;
    All these keywords.

    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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