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Sustaining Cooperation in trust Games

Author

Listed:
  • Kevin McCabe

    (George Mason University)

  • Mary Rigdon

    (Harvard University)

  • Vernon Smith

    (George Mason University)

Abstract

It is well-known in evolutionary game theory that population clustering in Prisoner Dilemma games allows some cooperative strategies to invade populations of stable defecting strategies. We adapt this idea of population clustering to a two-person trust game. Players are typed based on their recent track record as whether or not they are trusting (Players 1) and whether or not they are trustworthy (Players 2). They are then paired according to those types: trustors with trustworthy types, and similarly non-trustors with untrustworthy types. The empirical question we address is whether this adaptation of clustering to bargaining environments sustains cooperative play analogous to the situation in finitely repeated PD games.

Suggested Citation

  • Kevin McCabe & Mary Rigdon & Vernon Smith, 2004. "Sustaining Cooperation in trust Games," Experimental 0403005, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpex:0403005
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    References listed on IDEAS

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    More about this item

    Keywords

    exchange; trust; reciprocity; cooperation; clustering; bargaining; experimental economics;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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