Hostname: page-component-7b9c58cd5d-dlb68 Total loading time: 0 Render date: 2025-03-14T18:43:10.811Z Has data issue: false hasContentIssue false

Revisiting strategic versus non-strategic cooperation

Published online by Cambridge University Press:  14 March 2025

Ernesto Reuben*
Affiliation:
Columbia University and IZA, New York, USA
Sigrid Suetens*
Affiliation:
CentER, TILEC, and TIBER, Tilburg University, Tilburg, The Netherlands
Rights & Permissions [Opens in a new window]

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

We propose a novel experimental method that disentangles strategically- and non-strategically-motivated behavior. We apply it to an indefinitely-repeated prisoner's dilemma game to observe simultaneously how the same individual behaves in situations with future interaction and in situations with no future interaction, while controlling for expectations. This method allows us to determine the extent to which strategically-cooperating individuals are responsible for the observed pattern of cooperation in experiments with repeated interaction, including the so-called endgame effect. Our results indicate that the most common motive for cooperation in repeated games is strategic.

Type
Original Paper
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NC
This is an open access article distributed under the terms of the Creative Commons Attribution Noncommercial License (https://creativecommons.org/licenses/by-nc/2.0), which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.
Copyright
Copyright © The Author(s) 2011

Footnotes

Electronic supplementary material The online version of this article (doi:https://doi.org/10.1007/s10683-011-9285-5) contains supplementary material, which is available to authorized users.

References

Abbink, K. (2004). Staff rotation as an anti-corruption policy: An experimental study. European Journal of Political Economy, 20, 887906.CrossRefGoogle Scholar
Andreoni, J. (1988). Why free ride? Strategies and learning in public goods experiments. Journal of Public Economics, 37, 291304.CrossRefGoogle Scholar
Andreoni, J., & Croson, R. (2008). Partners versus strangers: Random rematching in public goods experiments. In Plott, C. R. & Smith, V. L. (Eds.), Handbook of experimental economics results (pp. 776783). Amsterdam: North-Holland.CrossRefGoogle Scholar
Andreoni, J., & Miller, J. H. (1993). Rational cooperation in the finitely repeated prisoner's dilemma: Experimental evidence. Economic Journal, 103, 570585.CrossRefGoogle Scholar
Aoyagi, M., & Fréchette, G. (2009). Collusion as public monitoring becomes noisy: Experimental evidence. Journal of Economic Theory, 144, 11351165.CrossRefGoogle Scholar
Brandts, J., & Charness, G. (2000). Hot vs. cold: sequential responses and preference stability in experimental games. Experimental Economics, 2, 227238.CrossRefGoogle Scholar
Brandts, J., & Charness, G. (Forthcoming). The strategy versus the direct-response method: a first survey of experimental comparisons. Experimental Economics.Google Scholar
Brosig, J., Weimann, J., & Yang, C.-L. (2003). The hot versus cold effect in a simple bargaining experiment. Experimental Economics, 6, 7990.CrossRefGoogle Scholar
Bruttel, L. V., & Kamecke, U. (2011, forthcoming). Infinity in the lab: How do people play repeated games? Theory and Decision. doi:10.1007/s11238-011-9247-6.CrossRefGoogle Scholar
Cabral, L., Ozbay, E. Y., & Schotter, A. (2011). Intrinsic and instrumental reciprocity: An experimental study (Working paper). New York University.Google Scholar
Camerer, C. F., & Fehr, E. (2006). When does ‘economic man’ dominate social behavior? Science, 311, 4752.CrossRefGoogle ScholarPubMed
Camerer, C., & Weigelt, K. (1988). Experimental tests of a sequential equilibrium reputation model. Econometrica, 56, 136.CrossRefGoogle Scholar
Cason, T. N., & Mui, V.-L. (1998). Social influence in the sequential dictator game. Journal of Mathematical Psychology, 42, 248265.CrossRefGoogle ScholarPubMed
Clark, K., & Sefton, M. (2001). The sequential prisoner's dilemma: evidence on reciprocation. Economic Journal, 111, 5168.CrossRefGoogle Scholar
Cochard, F., & Willinger, M. (2005). Fair offers in a repeated principal-agent relationship with hidden actions. Economica, 72, 225240.CrossRefGoogle Scholar
Croson, R. (1996). Partners and strangers revisited. Economics Letters, 53, 2532.CrossRefGoogle Scholar
Croson, R. (2000). Thinking like a game theorist: factors affecting the frequency of equilibrium play. Journal of Economic Behavior & Organization, 41, 299314.CrossRefGoogle Scholar
Dal Bó, P (2005). Cooperation under the shadow of the future: Experimental evidence from infinitely repeated games. The American Economic Review, 95, 15911604.Google Scholar
Dal Bó, P, & Fréchette, G. R. (2011). The evolution of cooperation in infinitely repeated games: Experimental evidence. The American Economic Review, 101, 411429.CrossRefGoogle Scholar
Dreber, A., Fudenberg, D., & Rand, D. G. (2011). Who cooperates in repeated games? (Working paper). Harvard University.Google Scholar
Duffy, J., & Ochs, J. (2009). Cooperative behavior and the frequency of social interaction. Games and Economic Behavior, 66, 785812.CrossRefGoogle Scholar
Engle-Warnick, J., & Slonim, R. L. (2004). The evolution of strategies in a repeated trust game. Journal of Economic Behavior & Organization, 55, 553573.CrossRefGoogle Scholar
Engle-Warnick, J., & Slonim, R. L. (2006). Inferring repeated-game strategies from actions: Evidence from repeated trust game experiments. Journal of Economic Theory, 28, 603632.CrossRefGoogle Scholar
Falk, A., Fehr, E., & Fischbacher, U. (2005). Driving forces behind informal sanctions. Econometrica, 73, 20172030.CrossRefGoogle Scholar
Fehr, E., Fischbacher, U., & Gächter, S. (2002). Strong reciprocity, human cooperation and the enforcement of social norms. Human Nature, 13, 125.CrossRefGoogle ScholarPubMed
Fischbacher, U. (2007). z-Tree: Zurich toolbox for ready-made economic experiments. Experimental Economics, 10, 171178.CrossRefGoogle Scholar
Fischbacher, U., & Gächter, S. (2010). Social preferences, beliefs, and the dynamics of free riding in public good experiments. The American Economic Review, 16, 541556.CrossRefGoogle Scholar
Fischbacher, U., Gächter, S., & Fehr, E. (2001). Are people conditionally cooperative? Evidence from a public goods experiment. Economics Letters, 71, 397404.CrossRefGoogle Scholar
Friedman, J. W. (1971). A non-cooperative equilibrium for supergames. Review of Economic Studies, 38, 112.CrossRefGoogle Scholar
Fudenberg, D., & Maskin, E. (1986). The folk theorem in repeated games with discounting or with incomplete information. Econometrica, 54, 533554.CrossRefGoogle Scholar
Fudenberg, D., Rand, D. G., & Dreber, A. (2011, forthcoming). Slow to anger and fast to forget: Cooperation in an uncertain world. American Economic Review. Available online at http://www.aeaweb.org/forthcoming/output/accepted_AER.php.CrossRefGoogle Scholar
Gächter, S., & Falk, A. (2002). Reputation and reciprocity: Consequences for the labour relation. The Scandinavian Journal of Economics, 104, 126.CrossRefGoogle Scholar
Gächter, S., & Renner, E. (2006). The effects of (incentivized) belief elicitation in public good experiments (Discussion paper 2006-16). CeDeX.Google Scholar
Gintis, H. (2000). Strong reciprocity and human sociality. Journal of Theoretical Biology, 206, 169179.CrossRefGoogle ScholarPubMed
Huck, S., Ruchala, G., & Tyran, J.-R. (2006). Competition fosters trust (Working paper 06-22). University of Copenhagen.Google Scholar
Katok, E., Sefton, M., & Yavas, A. (2002). Implementation by iterative dominance and backward induction: An experimental comparison. Journal of Economic Theory, 104, 89103.CrossRefGoogle Scholar
Keser, C., & van Winden, F. (2000). Conditional cooperation and voluntary contributions to public goods. The Scandinavian Journal of Economics, 102, 2339.CrossRefGoogle Scholar
Kreps, D. M., Milgrom, P., Roberts, J., & Wilson, R. (1982). Rational cooperation in the finitely repeated prisoners’ dilemma. Journal of Economic Theory, 27, 245252.CrossRefGoogle Scholar
Lacomba, J. A., Lagos, F. M., Reuben, E., & van Winden, F. (2010). On the escalation and de-escalation of conflict (Working paper). University of Amsterdam.Google Scholar
McKelvey, R. D., & Palfrey, T. R. (1992). An experimental study of the centipede game. Econometrica, 60, 803836.CrossRefGoogle Scholar
Muller, L., Sefton, M., Steinberg, R., & Vesterlund, L. (2008). Strategic behavior and learning in repeated voluntary-contribution experiments. Journal of Economic Behavior & Organization, 67, 782793.CrossRefGoogle Scholar
Normann, H.-T., & Wallace, B. (2006). The impact of the termination rule on cooperation in a prisoner's dilemma experiment (Working paper). University College London.Google Scholar
Palacios-Huerta, I., & Volij, O. (2008). Experientia docet: Professionals play minimax in laboratory experiments. Econometrica, 76, 71115.CrossRefGoogle Scholar
Rubinstein, A. (1979). Equilibrium in supergames with the overtaking criterion. Journal of Economic Theory, 21, 19.CrossRefGoogle Scholar
Selten, R. (1967). Die Strategiemethode zur Erforschung des eingeschränkt rationalen Verhaltens im Rahmen eines Oligopolexperiments. In Sauermann, H. (Ed.), Beiträge zur Experimentellen Wirtschaftsforschung (pp. 136168). Tübingen: Mohr (Paul Siebeck).Google Scholar
Selten, R., Mitzkewitz, M., & Uhlich, G. (1997). Duopoly strategies programmed by experienced players. Econometrica, 65, 517555.CrossRefGoogle Scholar
Selten, R., & Stoecker, R. (1986). End behaviour in sequences of finite prisoner's dilemma supergames. Journal of Economic Behavior & Organization, 3, 4770.CrossRefGoogle Scholar
Sobel, J. (2005). Interdependent preferences and reciprocity. Journal of Economic Literature, 43(2), 392436.CrossRefGoogle Scholar
Stahl, D. O. I. (1991). The graph of prisoner's dilemma supergame payoffs as a function of the discount factor. Games and Economic Behavior, 3, 368384.CrossRefGoogle Scholar
Supplementary material: File

Reuben and Suetens supplementary material

Reuben and Suetens supplementary material
Download Reuben and Suetens supplementary material(File)
File 27.3 KB