IDEAS home Printed from https://ideas.repec.org/p/tcr/wpaper/e62.html
   My bibliography  Save this paper

Diverse Behavior Patterns in a Symmetric Society with Voluntary Partnerships

Author

Listed:
  • Takako Fujiwara-Greve
  • Masahiro Okuno-Fujiwara

Abstract

In the literature of voluntarily repeated Prisoner's Dilemma, the focus is on how long-term cooperation is established, when newly matched partners cannot know the past actions of each other. In this paper we investigate how non-cooperative and cooperative players co-exist. In many incomplete information versions of a similar model, inherently non-cooperative players are assumed to exist in the society, but their long-run fitness has not been analyzed. In reality and in experiments, we also observe that some people are cooperative, while others never cooperate. We show that a bimorphic equilibrium of the most cooperative strategy and the most myopic strategy exists for sufficiently high survival rate of players, and that it is evolutionarily stable under uncoordinated mutations. For lower survival rates, adding initial periods of defection makes similar bimorphic equilibria. Both types of equilibria confirm persistence of defectors.

Suggested Citation

  • Takako Fujiwara-Greve & Masahiro Okuno-Fujiwara, 2013. "Diverse Behavior Patterns in a Symmetric Society with Voluntary Partnerships," Working Papers e062, Tokyo Center for Economic Research.
  • Handle: RePEc:tcr:wpaper:e62
    as

    Download full text from publisher

    File URL: https://www.tcer.or.jp/wp/pdf/e62.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Drew Fudenberg & Eric Maskin, 2008. "The Folk Theorem In Repeated Games With Discounting Or With Incomplete Information," World Scientific Book Chapters, in: Drew Fudenberg & David K Levine (ed.), A Long-Run Collaboration On Long-Run Games, chapter 11, pages 209-230, World Scientific Publishing Co. Pte. Ltd..
    2. Jackson, Matthew O. & Watts, Alison, 2010. "Social games: Matching and the play of finitely repeated games," Games and Economic Behavior, Elsevier, vol. 70(1), pages 170-191, September.
    3. Izquierdo, Luis R. & Izquierdo, Segismundo S. & Vega-Redondo, Fernando, 2014. "Leave and let leave: A sufficient condition to explain the evolutionary emergence of cooperation," Journal of Economic Dynamics and Control, Elsevier, vol. 46(C), pages 91-113.
    4. Rafael Rob & Huanxing Yang, 2010. "Long-term relationships as safeguards," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 43(2), pages 143-166, May.
    5. Samuelson, Larry & Zhang, Jianbo, 1992. "Evolutionary stability in asymmetric games," Journal of Economic Theory, Elsevier, vol. 57(2), pages 363-391, August.
    6. Takako Fujiwara-Greve & Masahiro Okuno-Fujiwara & Nobue Suzuki, 2015. "Efficiency may improve when defectors exist," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(3), pages 423-460, November.
    7. Kandori, Michihiro & Mailath, George J & Rob, Rafael, 1993. "Learning, Mutation, and Long Run Equilibria in Games," Econometrica, Econometric Society, vol. 61(1), pages 29-56, January.
    8. Duffie, Darrell & Sun, Yeneng, 2012. "The exact law of large numbers for independent random matching," Journal of Economic Theory, Elsevier, vol. 147(3), pages 1105-1139.
    9. Drew Fudenberg & David G. Rand & Anna Dreber, 2012. "Slow to Anger and Fast to Forgive: Cooperation in an Uncertain World," American Economic Review, American Economic Association, vol. 102(2), pages 720-749, April.
    10. Glenn Ellison, 1994. "Cooperation in the Prisoner's Dilemma with Anonymous Random Matching," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(3), pages 567-588.
    11. Takahashi, Satoru, 2010. "Community enforcement when players observe partners' past play," Journal of Economic Theory, Elsevier, vol. 145(1), pages 42-62, January.
    12. Simon Gaechter & Esther Kessler & Manfred Koenigstein, 2011. "The roles of incentives and voluntary cooperation for contractual compliance," Discussion Papers 2011-06, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    13. David McAdams, 2011. "Performance and Turnover in a Stochastic Partnership," American Economic Journal: Microeconomics, American Economic Association, vol. 3(4), pages 107-142, November.
    14. In-Koo Cho & Akihiko Matsui, 2009. "Matching, Aspiration and Long-Term Relationship," Levine's Working Paper Archive 814577000000000134, David K. Levine.
    15. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
    16. Takako Fujiwara-Greve & Masahiro Okuno-Fujiwara, 2009. "Voluntarily Separable Repeated Prisoner's Dilemma," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 993-1021.
    17. Mailath, George J. & Samuelson, Larry, 2006. "Repeated Games and Reputations: Long-Run Relationships," OUP Catalogue, Oxford University Press, number 9780195300796.
    18. Schumacher, Heiner, 2013. "Imitating cooperation and the formation of long-term relationships," Journal of Economic Theory, Elsevier, vol. 148(1), pages 409-417.
    19. Michihiro Kandori, 1992. "Social Norms and Community Enforcement," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(1), pages 63-80.
    20. de Martí Beltran, Joan, 2009. "Matthew O. Jackson, Social and Economic Networks , Princeton University Press (2008)," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 644-645, September.
    21. Kranton, Rachel E, 1996. "The Formation of Cooperative Relationships," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 12(1), pages 214-233, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Takako Fujiwara-Greve & Masahiro Okuno-Fujiwara & Nobue Suzuki, 2015. "Efficiency may improve when defectors exist," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(3), pages 423-460, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Takako Fujiwara-Greve & Masahiro Okuno-Fujiwara & Nobue Suzuki, 2015. "Efficiency may improve when defectors exist," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(3), pages 423-460, November.
    2. Filip Vesely & Chun-Lei Yang, 2013. "On Optimal Social Convention in Voluntary Continuation Prisoner's Dilemma Games," CESifo Working Paper Series 4553, CESifo.
    3. Joyee Deb & Takuo Sugaya & Alexander Wolitzky, 2020. "The Folk Theorem in Repeated Games With Anonymous Random Matching," Econometrica, Econometric Society, vol. 88(3), pages 917-964, May.
    4. Takako Fujiwara-Greve & Masahiro Okuno-Fujiwara, 2006. "Voluntarily Separable Prisoner's Dilemma," CIRJE F-Series CIRJE-F-415, CIRJE, Faculty of Economics, University of Tokyo.
    5. Takako Fujiwara-Greve & Masahiro Okuno-Fujiwara, 2009. "Voluntarily Separable Repeated Prisoner's Dilemma," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 993-1021.
    6. Tom Potoms & Tom Truyts, 2020. "Unhappy is the land without symbols - Group symbols in infinitely repeated public good games," Working Paper Series 1720, Department of Economics, University of Sussex Business School.
    7. Pin, Paolo & Rogers, Brian W., 2015. "Cooperation, punishment and immigration," Journal of Economic Theory, Elsevier, vol. 160(C), pages 72-101.
    8. Fujiwara-Greve, Takako & Okuno-Fujiwara, Masahiro & Suzuki, Nobue, 2012. "Voluntarily separable repeated Prisonerʼs Dilemma with reference letters," Games and Economic Behavior, Elsevier, vol. 74(2), pages 504-516.
    9. Rafael Rob & Huanxing Yang, 2010. "Long-term relationships as safeguards," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 43(2), pages 143-166, May.
    10. Daron Acemoglu & Alexander Wolitzky, 2015. "Sustaining Cooperation: Community Enforcement vs. Specialized Enforcement," Levine's Bibliography 786969000000001179, UCLA Department of Economics.
    11. Etro, Federico, 2017. "Research in economics and game theory. A 70th anniversary," Research in Economics, Elsevier, vol. 71(1), pages 1-7.
    12. W. Bentley MacLeod, 2006. "Reputations, Relationships and the Enforcement of Incomplete Contracts," CESifo Working Paper Series 1730, CESifo.
    13. Luciana Cecilia Moscoso Boedo & Lucia Quesada & Marcela Tarazona, 2013. "Cooperation among Strangers in the Presence of Defectors: An Experimental Study," Working papers DTE 567, CIDE, División de Economía.
    14. Takako Fujiwara‐Greve & Henrich R. Greve & Stefan Jonsson, 2016. "Asymmetry Of Customer Loss And Recovery Under Endogenous Partnerships: Theory And Evidence," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57(1), pages 3-30, February.
    15. Heller, Yuval & Tubul, Itay, 2023. "Strategies in the repeated prisoner’s dilemma: A cluster analysis," MPRA Paper 117444, University Library of Munich, Germany.
    16. von Wangenheim, Georg & Müller, Stephan, 2014. "Evolution of cooperation in social dilemmas: signaling internalized norms," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100340, Verein für Socialpolitik / German Economic Association.
    17. Yutaka Kayaba & Hitoshi Matsushima & Tomohisa Toyama, 2019. "Accuracy and Retaliation in Repeated Games with Imperfect Private Monitoring: Experiments (Revised version of CARF-F-433)," CARF F-Series CARF-F-466, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    18. Takako Fujiwara-Greve & Masahiro Okuno-Fujiwara & Nobue Suzuki, 2010. "Voluntarily Separable Repeated Games with Social Norms," CIRJE F-Series CIRJE-F-715, CIRJE, Faculty of Economics, University of Tokyo.
    19. Yutaka Kayaba & Hitoshi Matsushima & Tomohisa Toyama, 2016. "Accuracy and Retaliation in Repeated Games with Imperfect Private Monitoring: Experiments and Theory," CARF F-Series CARF-F-381, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    20. Luca Anderlini & Dino Gerardi & Roger Lagunoff, 2008. "A “Super” Folk Theorem for dynastic repeated games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 37(3), pages 357-394, December.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tcr:wpaper:e62. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/tctokjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.