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Classroom Games: A Prisoner's Dilemma

  • Charles A. Holt

    ()

  • Monica Capra

Game theory is often introduced in undergraduate courses in the context of a prisoner's dilemma paradigm, which illustrates the conflict between social incentives to cooperate and private incentives to defect. We present a very simple card game that efficiently involves a large number of students in a prisoner's dilemma. The extent of cooperation is affected by the payoff incentives and by the nature of repeated interaction. The exercise can be used to stimulate a discussion of a wide range of topics such as bankruptcy, quality standards, or price competition.

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File URL: http://www.virginia.edu/economics/RePEc/vir/virpap/papers/virpap330.pdf
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Paper provided by University of Virginia, Department of Economics in its series Virginia Economics Online Papers with number 330.

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Length: 12 pages
Date of creation:
Date of revision:
Handle: RePEc:vir:virpap:330
Contact details of provider: Web page: http://www.virginia.edu/economics/home.html

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  1. Russell Cooper & Douglas V. DeJong & Thomas W. Ross, 1992. "Cooperation without Reputation: Experimental Evidence from Prisoner's Dilemma Games," Papers 0036, Boston University - Industry Studies Programme.
  2. Roth, Alvin E, 1988. "Laboratory Experimentation in Economics: A Methodological Overview," Economic Journal, Royal Economic Society, vol. 98(393), pages 974-1031, December.
  3. Dawes, Robyn M & Thaler, Richard H, 1988. "Anomalies: Cooperation," Journal of Economic Perspectives, American Economic Association, vol. 2(3), pages 187-97, Summer.
  4. C. Monica Capra, 1999. "Anomalous Behavior in a Traveler's Dilemma?," American Economic Review, American Economic Association, vol. 89(3), pages 678-690, June.
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