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Asymmetric Payoffs in Simultaneous and Sequential Prisoner's Dilemma Games

Author

Listed:
  • T.K. Ahn

    (Florida State University)

  • Myungsuk Lee

    (Sung Kyun Kwan University)

  • Lore Ruttan

    (Emory University)

  • James M. Walker

    (Indiana University Bloomington)

Abstract

We investigate the role of payoff asymmetry in laboratory prisoner’s dilemma games. Symmetric and Asymmetric games are examined in simultaneous and sequential settings. In the asymmetric/sequential games, we study the impact of having payoff advantaged players moving either first or second. Asymmetry reduces the rates of cooperation in simultaneous games. In sequential games, asymmetry interacts with order of play such that the rate of cooperation is highest when payoff disadvantaged players move first. The presence of an exit option increases cooperation by the players who choose to play the game when payoffs are symmetric, or when payoffs are asymmetric and the payoff disadvantaged player moves first.

Suggested Citation

  • T.K. Ahn & Myungsuk Lee & Lore Ruttan & James M. Walker, 2005. "Asymmetric Payoffs in Simultaneous and Sequential Prisoner's Dilemma Games," CAEPR Working Papers 2006-003, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington, revised Aug 2006.
    • Handle: RePEc:inu:caeprp:2006003
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    2. Asako, Yasushi & Funaki, Yukihiko & Ueda, Kozo & Uto, Nobuyuki, 2020. "(A)symmetric information bubbles: Experimental evidence," Journal of Economic Dynamics and Control, Elsevier, vol. 110(C).
    3. Janssen, Marco A. & Rollins, Nathan D., 2012. "Evolution of cooperation in asymmetric commons dilemmas," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 220-229.
    4. Garret Ridinger, 2021. "Intentions versus Outcomes: Cooperation and Fairness in a Sequential Prisoner’s Dilemma with Nature," Games, MDPI, vol. 12(3), pages 1-30, July.
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    6. Pablo Guillen & Archer Kirk & Lokendra Nedunuri, 2024. "Achieving efficient outcomes in the Prisoner’s Dilemma game: explicit instructions and extreme punishment," Working Papers 2024-10, University of Sydney, School of Economics.
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    8. Attanasi, Giuseppe Marco & Garcia-Gallego, Aurora & Georgantzis, Nikolaos & Montesano, Aldo, 2011. "An Experiment on Prisoner’s Dilemma with Confirmed Proposals," TSE Working Papers 11-274, Toulouse School of Economics (TSE).
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    10. Gross, Till & Servátka, Maroš & Vadovič, Radovan, 2019. "Sequential vs. Simultaneous Trust," MPRA Paper 96343, University Library of Munich, Germany.

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    Keywords

    cooperation; prisoner’s dilemma; heterogeneity; exit option;
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