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Indirect Reciprocity in Cyclical Networks - An Experimental Study -

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  • Ben Greiner
  • Maria Vittoria Levati

Abstract

A cyclical network of indirect reciprocity is derived organizing 3- or 6-person groups into rings of social interaction where the first individual can help the second, the second the third, and so on till the last, who in return can help the first. Mutual cooperation is triggered by assuming that what one passes on to the next is multiplied by a factor of 3. Participants play repeatedly either in a partner or in a stranger condition, and take their decisions first simultaneously and then sequentially. We find that pure indirect reciprocity enables mutual cooperation although strategic considerations and group size are important too.

Suggested Citation

  • Ben Greiner & Maria Vittoria Levati, 2003. "Indirect Reciprocity in Cyclical Networks - An Experimental Study -," Papers on Strategic Interaction 2003-15, Max Planck Institute of Economics, Strategic Interaction Group.
  • Handle: RePEc:esi:discus:2003-15
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    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D3 - Microeconomics - - Distribution

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