Voluntarily Separable Repeated Prisoner's Dilemma
Ordinary repeated games do not apply to real societies where one can cheat and escape from partners. We formulate a model of endogenous relationships that a player can unilaterally end and start with a randomly-assigned new partner with no information flow. Focusing on two-person, two-action Prisoner's Dilemma, we show that the endogenous duration of partnerships generates a significantly different evolutionary stability structure from ordinary random matching games. Monomorphic equilibria require initial trust-building, while a polymorphic equilibrium includes earlier cooperators than any strategy in monomorphic equilibria and is thus more efficient. This is due to the nonlinearity of average payoffs.Length: 37pages
|Date of creation:||Oct 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.cirje.e.u-tokyo.ac.jp/index.html
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.:
- Carmichael, H Lorne & MacLeod, W Bentley, 1997.
"Gift Giving and the Evolution of Cooperation,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(3), pages 485-509, August.
- Dilip Abreu & Rajiv Sethi, 2001.
"Evolutionary Stability in a Reputational Model of Bargaining,"
Game Theory and Information
- Abreu, Dilip & Sethi, Rajiv, 2003. "Evolutionary stability in a reputational model of bargaining," Games and Economic Behavior, Elsevier, vol. 44(2), pages 195-216, August.
- Jan Eeckhout, 2006. "Minorities and Endogenous Segregation," Review of Economic Studies, Oxford University Press, vol. 73(1), pages 31-53.
- "Okuno-Fujiwara, Masahiro" & "Fujiwara-Greve, Takako" & "Suzuki, Nobue", 2007. "Social Norms and Voluntary Cooperation," Economic Review, Hitotsubashi University, vol. 58(2), pages 110-121, April.
- Rafael Rob & Huanxing Yang, 2006.
"Long Term Relationships as Safeguards,"
Levine's Working Paper Archive
618897000000001039, David K. Levine.
- Okuno-Fujiwara, Masahiro, 1987. "Monitoring cost, agency relationships, and equilibrium modes of labor contracts," Journal of the Japanese and International Economies, Elsevier, vol. 1(2), pages 147-167, June.
- Kranton, Rachel E, 1996. "Reciprocal Exchange: A Self-Sustaining System," American Economic Review, American Economic Association, vol. 86(4), pages 830-51, September.
- Ellison, Glenn, 1994.
"Cooperation in the Prisoner's Dilemma with Anonymous Random Matching,"
Review of Economic Studies,
Wiley Blackwell, vol. 61(3), pages 567-88, July.
- Glen Ellison, 2010. "Cooperation in the Prisoner's Dilemma with Anonymous Random Matching," Levine's Working Paper Archive 631, David K. Levine.
- Kranton, Rachel E, 1996. "The Formation of Cooperative Relationships," Journal of Law, Economics and Organization, Oxford University Press, vol. 12(1), pages 214-33, April.
- Furusawa, Taiji & Kawakami, Toshikazu, 2008. "Gradual cooperation in the existence of outside options," Journal of Economic Behavior & Organization, Elsevier, vol. 68(2), pages 378-389, November.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
- Fudenberg, Drew & Maskin, Eric, 1986. "The Folk Theorem in Repeated Games with Discounting or with Incomplete Information," Econometrica, Econometric Society, vol. 54(3), pages 533-54, May.
- Watson, Joel, 2002.
"Starting Small and Commitment,"
Games and Economic Behavior,
Elsevier, vol. 38(1), pages 176-199, January.
- Watson, Joel, 1999. "Starting Small and Commitment," University of California at San Diego, Economics Working Paper Series qt37p340fc, Department of Economics, UC San Diego.
- Joel Watson, 1999. "Starting Small and Commitment," Cowles Foundation Discussion Papers 1217, Cowles Foundation for Research in Economics, Yale University.
- Masahiro Okuno-Fujiwara & Takako Fujiwara-Greve & Nobue Suzuki, 2007. ""Social Norms and Voluntary Cooperations"(in Japanese)," CIRJE J-Series CIRJE-J-172, CIRJE, Faculty of Economics, University of Tokyo.
- Kandori, Michihiro, 1992.
"Social Norms and Community Enforcement,"
Review of Economic Studies,
Wiley Blackwell, vol. 59(1), pages 63-80, January.
When requesting a correction, please mention this item's handle: RePEc:tky:fseres:2008cf599. 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: (CIRJE administrative office)
If references are entirely missing, you can add them using this form.