Alternating or Compensating? An Experiment on the Repeated Sequential Best Shot Game
In the two-person sequential best shot game, first player 1 contributes to a public good and then player 2 is informed about this choice before contributing. The payoff from the public good is the same for both players and depends only on the maximal contribution. Efficient voluntary cooperation in the repeated best shot game therefore requires that only one player should contribute in a given round. To provide better chances for such cooperation, we enrich the sequential best shot base game by a third stage allowing the party with the lower contribution to transfer some of its periodic gain to the other party. Participants easily establish cooperation in the finitely repeated game. When cooperation evolves, it mostly takes the form of 'labor division,' with one participant constantly contributing and the other constantly compensating. However, in a treatment in which compensation is not possible, (more or less symmetric) alternating occurs frequently and turns out to be almost as efficient as labor division.
|Date of creation:||31 Oct 2013|
|Date of revision:|
|Contact details of provider:|| Postal: D-78457 Konstanz|
Web page: http://www.wiwi.uni-konstanz.de/fb
More information through EDIRC
|Order Information:||Web: http://www.wiwi.uni-konstanz.de/fb|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anderhub, Vital & Güth, Werner & Engelmann, Dirk, 1999.
"An experimental study of the repeated trust game with incomplete information,"
SFB 373 Discussion Papers
1999,97, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Anderhub, Vital & Engelmann, Dirk & Guth, Werner, 2002. "An experimental study of the repeated trust game with incomplete information," Journal of Economic Behavior & Organization, Elsevier, vol. 48(2), pages 197-216, June.
- Werner Güth & Hartmut Kliemt & M. Vittoria Levati & Geog von Wangenheim, 2006.
"On the Co-evolution of Retribution and Trustworthiness: An (Indirect) Evolutionary and Experimental Analysis,"
Papers on Strategic Interaction
2006-18, Max Planck Institute of Economics, Strategic Interaction Group.
- Werner Güth & Hartmut Kliemt & M. Vittoria Levati & Georg von Wangenheim, 2007. "On the Coevolution of Retribution and Trustworthiness: An (Indirect) Evolutionary and Experimental Analysis," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(1), pages 143-157, March.
- Vesna Prasnikar & Alvin E. Roth, 1992.
"Considerations of Fairness and Strategy: Experimental Data from Sequential Games,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 107(3), pages 865-888.
- V. Prasnikar & A. Roth, 1998. "Considerations of fairness and strategy: experimental data from sequential games," Levine's Working Paper Archive 451, David K. Levine.
- Gerald Eisenkopf, 2007.
"Learning and Peer Effects,"
TWI Research Paper Series
16, Thurgauer Wirtschaftsinstitut, Universitï¿½t Konstanz.
- Pedro Dal Bó, 2005.
"Cooperation under the Shadow of the Future: Experimental Evidence from Infinitely Repeated Games,"
American Economic Review,
American Economic Association, vol. 95(5), pages 1591-1604, December.
- Pedro Dal Bó, 2002. "Cooperation Under the Shadow of the Future: Experimental Evidence from Infinitely Repeated Games," Working Papers 2002-20, Brown University, Department of Economics.
- Brandts, Jordi & Figueras, Neus, 2003.
"An exploration of reputation formation in experimental games,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 50(1), pages 89-115, January.
- Brandts, J. & Figueras, N., 1997. "An Exploration of Reputation Formation in Experimental Games," UFAE and IAE Working Papers 404.97, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Gabriele Camera & Marco Casari, 2009. "Cooperation among Strangers under the Shadow of the Future," American Economic Review, American Economic Association, vol. 99(3), pages 979-1005, June.
- Greiner, Ben, 2004. "An Online Recruitment System for Economic Experiments," MPRA Paper 13513, University Library of Munich, Germany.
- Sau-Him Lau & Vai-Lam Mui, 2008. "Using Turn Taking to Mitigate Coordination and Conflict Problems in the Repeated Battle of the Sexes Game," Theory and Decision, Springer, vol. 65(2), pages 153-183, September.
- Sau-Him Lau & Vai-Lam Mui, 2012. "Using turn taking to achieve intertemporal cooperation and symmetry in infinitely repeated 2 × 2 games," Theory and Decision, Springer, vol. 72(2), pages 167-188, February.
- Ananish Chaudhuri, 2011. "Sustaining cooperation in laboratory public goods experiments: a selective survey of the literature," Experimental Economics, Springer;Economic Science Association, vol. 14(1), pages 47-83, March.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
When requesting a correction, please mention this item's handle: RePEc:knz:dpteco:1324. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr. Lisa Green)
If references are entirely missing, you can add them using this form.