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Choice Flexibility and Long-Run Cooperation

Author

Listed:
  • Gabriele Camera

    (Chapman University)

  • Jaehong Kim

    (Xiamen University)

  • David Rojo Arjona

    (Chapman University)

Abstract

Understanding how incentives and institutions help scaling up cooperation is important, especially when strategic uncertainty is considerable. Evidence suggests that this is challenging even when full cooperation is theoretically sustainable thanks to indefinite repetition. In a controlled social dilemma experiment, we show that adding partial cooperation choices to the usual binary choice environment can raise cooperation and efficiency. Under suitable incentives, partial cooperation choices enable individuals to cheaply signal their desire to cooperate, reducing strategic uncertainty. The insight is that richer choice sets can form the basis of a language meaningful for coordinating on cooperation.

Suggested Citation

  • Gabriele Camera & Jaehong Kim & David Rojo Arjona, 2023. "Choice Flexibility and Long-Run Cooperation," Working Papers 23-05, Chapman University, Economic Science Institute.
  • Handle: RePEc:chu:wpaper:23-05
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    File URL: https://digitalcommons.chapman.edu/esi_working_papers/385/
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    More about this item

    Keywords

    experiments; repeated games; social dilemmas; strategy estimation;
    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
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

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