Waiting to Cooperate?
Sometimes cooperation between two parties requires exactly one to cede to the other. If the decisions whether to cede are made simultaneously, then neither or both may acquiesce leading to an inefficient outcome. However, inefficiency may be avoided if a party can wait to see what the other does. We experimentally test whether adding a waiting option to such a two-player cooperation game enhances cooperation. Although subjects cede less overall with the waiting option, we show that they coordinate more and consequently achieve higher profits. Yet, a dark side overhangs waiting: the least cooperative pairs do worse with this option. They wait not to facilitate coordination but to disguise their entry.
|Date of creation:||22 Sep 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Hamilton, Jonathan H. & Slutsky, Steven M., 1990.
"Endogenous timing in duopoly games: Stackelberg or cournot equilibria,"
Games and Economic Behavior,
Elsevier, vol. 2(1), pages 29-46, March.
- Hamilton, J.H. & Slutsky, S.M., 1988. "Endogenous Timing In Duopoly Games: Stackelberg Or Cournot Equilibria," Papers 88-4, Florida - College of Business Administration.
- Dirk Engelmann & Veronika Grimm, 2012.
"Mechanisms for Efficient Voting with Private Information about Preferences,"
Royal Economic Society, vol. 122(563), pages 1010-1041, 09.
- Engelmann, Dirk & Grimm, Veronika, 2008. "Mechanisms for efficient voting with private information about preferences," FAU Discussion Papers in Economics 03/2008, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
- Gul, Faruk & Lundholm, Russell, 1995. "Endogenous Timing and the Clustering of Agents' Decisions," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1039-66, October.
- MiguelA. Fonseca & Hans-Theo Normann, 2008. "Mergers, Asymmetries and Collusion: Experimental Evidence," Economic Journal, Royal Economic Society, vol. 118(527), pages 387-400, 03.
- Kaplan, Todd & Ruffle, Bradley, .
"Which Way to Cooperate,"
WP2011/5, University of Haifa, Department of Economics.
- Huck, Steffen & Müller, Wieland & Normann, Hans-Theo, 1999.
"Stackelberg beats Cournot: On collusion and efficiency in experimental markets,"
SFB 373 Discussion Papers
1999,32, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Huck, Steffen & Muller, Wieland & Normann, Hans-Theo, 2001. "Stackelberg Beats Cournot: On Collusion and Efficiency in Experimental Markets," Economic Journal, Royal Economic Society, vol. 111(474), pages 749-65, October.
- Potters, J.J.M. & Sefton, M. & Vesterlund, L., 2005.
"After you - endogenous sequencing in voluntary contribution games,"
Other publications TiSEM
db491f52-df7b-43dd-ab2b-7, Tilburg University, School of Economics and Management.
- Potters, Jan & Sefton, Martin & Vesterlund, Lise, 2005. "After you--endogenous sequencing in voluntary contribution games," Journal of Public Economics, Elsevier, vol. 89(8), pages 1399-1419, August.
- Potters, J.J.M. & Sefton, M. & Vesterlund, L., 2003. "After You - Endogenous Sequencing in Voluntary Contribution Games," Discussion Paper 2003-98, Tilburg University, Center for Economic Research.
- Anthony Ziegelmeyer & Kene Boun My & Jean-Christophe Vergnaud & Marc Willinger, 2006. "Strategic Delay and Rational Imitation in the Laboratory," Papers on Strategic Interaction 2005-35, Max Planck Institute of Economics, Strategic Interaction Group.
- Timothy Cason & Sau-Him Lau & Vai-Lam Mui, 2013.
"Learning, teaching, and turn taking in the repeated assignment game,"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(2), pages 335-357, October.
- Timothy N. Cason & Sau-Him Paul Lau & Vai-Lam Mui, 2011. "Learning, Teaching, and Turn Taking in the Repeated Assignment Game," Purdue University Economics Working Papers 1267, Purdue University, Department of Economics.
- Gale, D. & Chamley, C., 1992.
"Information Revelation and Strategic Delay in a Model of Investment,"
10, Boston University - Department of Economics.
- Chamley, Christophe & Gale, Douglas, 1994. "Information Revelation and Strategic Delay in a Model of Investment," Econometrica, Econometric Society, vol. 62(5), pages 1065-85, September.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:50096. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.