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Implicit Coalitions in a Generalized Prisoner's Dilemma

Author

Listed:
  • Peter S. Fader

    (The Wharton School, University of Pennsylvania)

  • John R. Hauser

    (Sloan School of Management, Massachusetts Institute of Technology)

Abstract

The presence of a third party can affect attempts by two players to cooperate in a three-player, continuous-alternative, repeated Prisoner's Dilemma-like game. If the third player is uncooperative, two players may find it advantageous to cooperate implicitly, at a level somewhere between full (i.e., three-way) cooperation and full defection. We examine this phenomenon of implicit coalitions via two sequential computer tournaments (38 algorithms in tourney 1, 44 algorithms in tourney 2). In both tournaments, each with a different payoff function, the ability to recognize and/or encourage implicit coalitions seems to be a key indicator of success. This result holds up in a test of robustness. We also examine other properties, including those identified earlier by Axelrod (1980a, 1980b).

Suggested Citation

  • Peter S. Fader & John R. Hauser, 1988. "Implicit Coalitions in a Generalized Prisoner's Dilemma," Journal of Conflict Resolution, Peace Science Society (International), vol. 32(3), pages 553-582, September.
    • Handle: RePEc:sae:jocore:v:32:y:1988:i:3:p:553-582
    DOI: 10.1177/0022002788032003008
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    References listed on IDEAS

    as
    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. Axelrod, Robert, 1981. "The Emergence of Cooperation among Egoists," American Political Science Review, Cambridge University Press, vol. 75(2), pages 306-318, June.
    3. Abreu, Dilip, 1986. "Extremal equilibria of oligopolistic supergames," Journal of Economic Theory, Elsevier, vol. 39(1), pages 191-225, June.
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