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Rational Cooperation In One-Shot Simultaneous Pd-Situations


  • Heiner, Ronald Asher
  • Schmidtchen, Dieter


The paper shows that being able to forecast another player's actual cooperation better than pure chance can change players' strategic incentives in a one-shot simultaneous PD-situation. In particular, it is shown that if both players have such ability (to forecast each others' actual choices better than pure chance), then "conditionally cooperative" Nash equilibria may exist in addition to the "always defect" equilibrium. By "conditionally cooperative" we mean that players do not cooperate because of a behavioral "disposition" to act cooperatively, but cooperate rather selectively contingent on their forecasting of the opponent's cooperation (cooperate if and only if each other is forecasted to cooperate).

Suggested Citation

  • Heiner, Ronald Asher & Schmidtchen, Dieter, 1995. "Rational Cooperation In One-Shot Simultaneous Pd-Situations," CSLE Discussion Paper Series 95-03, Saarland University, CSLE - Center for the Study of Law and Economics.
  • Handle: RePEc:zbw:csledp:9503

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    References listed on IDEAS

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    10. Philip J. Reny, 1992. "Rationality in Extensive-Form Games," Journal of Economic Perspectives, American Economic Association, vol. 6(4), pages 103-118, Fall.
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    15. Rosenthal, Robert W., 1981. "Games of perfect information, predatory pricing and the chain-store paradox," Journal of Economic Theory, Elsevier, vol. 25(1), pages 92-100, August.
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    Cited by:

    1. Max Albert & Ronald A. Heiner, 2003. "An Indirect-Evolution Approad to Newcomb's Problem," Homo Oeconomicus, Institute of SocioEconomics, vol. 20, pages 161-194.
    2. Kirstein, Roland & Schmidtchen, Dieter, 1997. "Judicial detection skill and contractual compliance," International Review of Law and Economics, Elsevier, vol. 17(4), pages 509-520, December.
    3. Schmidtchen Dieter, 2006. "Wettbewerbsschutz durch regelgeleitete Wettbewerbspolitik – Anmerkungen zum institutionenökonomisch-evolutionären Wettbewerbsleitbild / Protecting competition by a rule governed policy – Remarks on th," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 57(1), pages 165-189, January.
    4. Schmidtchen, Dieter, 2000. "Homo oeconomicus und das Recht," CSLE Discussion Paper Series 2000-03, Saarland University, CSLE - Center for the Study of Law and Economics.
    5. Alfred Endres & Cornelia Ohl, 2000. "Taxes versus quotas to limit global environmental risks: new insights into an old affair," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 3(4), pages 399-423, December.

    More about this item


    prisoner's dilemma; reliability condition; forecasting ability; trust;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General


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