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The Effect of Sequentiality on Cooperation in Repeated Games

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  • Riccardo Ghidoni
  • Sigrid Suetens

Abstract

Sequentiality of moves in an infinitely repeated prisoner's dilemma does not change the conditions under which mutual cooperation can be supported in equilibrium relative to simultaneous decision-making. The nature of the interaction is different, however, given that sequential play reduces strategic uncertainty. We show in an experiment that this has large consequences for behavior. We find that with intermediate incentives to cooperate, sequentiality increases the cooperation rate by around 40 percentage points, whereas with very low or very high incentives to cooperate, cooperation rates are respectively very low or very high in both settings.

Suggested Citation

  • Riccardo Ghidoni & Sigrid Suetens, 2022. "The Effect of Sequentiality on Cooperation in Repeated Games," American Economic Journal: Microeconomics, American Economic Association, vol. 14(4), pages 58-77, November.
    • Handle: RePEc:aea:aejmic:v:14:y:2022:i:4:p:58-77
    DOI: 10.1257/mic.20200268
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    References listed on IDEAS

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    1. James W. Friedman, 1971. "A Non-cooperative Equilibrium for Supergames," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 38(1), pages 1-12.
    2. Quan Wen, 2002. "A Folk Theorem for Repeated Sequential Games," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(2), pages 493-512.
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    Cited by:

    1. Felix Kölle & Simone Quercia & Egon Tripodi, 2023. "Social Preferences under the Shadow of the Future," Rationality and Competition Discussion Paper Series 406, CRC TRR 190 Rationality and Competition.
    2. Emanuel Vespa & Taylor Weidman & Alistair J. Wilson, 2021. "Testing Models of Strategic Uncertainty: Equilibrium Selection in Repeated Games," Papers 2101.05900, arXiv.org.

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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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