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Strategy choice in the infinitely repeated prisoners' dilemma

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  • Dal Bó, Pedro
  • Fréchette, Guillaume R.

Abstract

We use a novel experimental design to identify the subjects' strategies in an infinitely repeated prisoners' dilemma experiment. We ask subjects to design strategies that will play in their place. We find that eliciting strategies has negligible effects on their behavior, supporting the validity of this method. We find the chosen strategies include some common ones such as Tit-For-Tat and Grim trigger. However, other strategies that are considered to have desirable properties, such as Win-Stay-Lose-Shift, are not prevalent. We also find that the strategies used to support cooperation change with the parameters of the game. Finally, our results confirm that long-run miscoordination can arise.

Suggested Citation

  • Dal Bó, Pedro & Fréchette, Guillaume R., 2013. "Strategy choice in the infinitely repeated prisoners' dilemma," Discussion Papers, Research Unit: Economics of Change SP II 2013-311, WZB Berlin Social Science Center.
    • Handle: RePEc:zbw:wzbeoc:spii2013311
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    Cited by:

    1. Dreber, Anna & Fudenberg, Drew & Rand, David G., 2014. "Who cooperates in repeated games: The role of altruism, inequity aversion, and demographics," Journal of Economic Behavior & Organization, Elsevier, vol. 98(C), pages 41-55.
    2. DeAngelo, Gregory & McCannon, Bryan C., 2017. "Theory of Mind predicts cooperative behavior," Economics Letters, Elsevier, vol. 155(C), pages 1-4.
    3. Kamei, Kenju, 2015. "Endogenous Reputation Formation: Cooperation and Identity under the Shadow of the Future," MPRA Paper 61657, University Library of Munich, Germany.

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    Keywords

    infinitely repeated games; prisoner's dilemma; cooperation; strategies; experimental economics;
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