Local and Group Interaction in Prisoners` Dilemmas
We experimentally study the effects of locality in a repeated prisoners' dilemma. We compare players located on a circle with those in neighbourless groups. On circles players interact only with neighbours, but not with distant players. In groups all players interact with each other in the same way. We observe less cooperation on circles than in (neighbourless) groups. This is explained through different learning behaviour and a different way to use cooperation as a signal.
|Date of creation:||13 Jan 2000|
|Date of revision:|
|Note:||We thank the German DFG (through SFB 303 and SFB 504) and the Spanish DGIC Tecnica PB95-0983 for supporting the project. We are grateful to Jörg Oechsler, Avner Shaked and several seminar participants for helpful comments.|
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