IDEAS home Printed from https://ideas.repec.org/a/taf/rsocec/v61y2003i2p183-210.html
   My bibliography  Save this article

Cooperation and fairness: the flood-Dresher experiment revisited

Author

Listed:
  • Tom De Herdt

Abstract

In this paper we set out to deepen our understanding of the importance of fairness in decision-making within the context of Prisoners' Dilemma games. A review of the “historic” Flood-Dresher experiment provides a useful empirical basis, as it allows us to look in considerable detail at how the experimental players made up their minds. We try out several game-theoretical readings of the experimental results, and find some value in Adam Smith's age-old concept of rules of conduct. We find that fairness considerations are much more than mere excuses for taking a free ride or pointers to focal points. They seem to play a considerable role both at a conscious and at a less-than-conscious level.

Suggested Citation

  • Tom De Herdt, 2003. "Cooperation and fairness: the flood-Dresher experiment revisited," Review of Social Economy, Taylor & Francis Journals, vol. 61(2), pages 183-210.
  • Handle: RePEc:taf:rsocec:v:61:y:2003:i:2:p:183-210
    DOI: 10.1080/0034676032000098219
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/0034676032000098219
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/0034676032000098219?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Linda Babcock & George Loewenstein, 1997. "Explaining Bargaining Impasse: The Role of Self-Serving Biases," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 109-126, Winter.
    2. Akerlof, George A & Dickens, William T, 1982. "The Economic Consequences of Cognitive Dissonance," American Economic Review, American Economic Association, vol. 72(3), pages 307-319, June.
    3. William M. Dugger, 1987. "The Economic Institutions of Capitalism," Journal of Economic Issues, Taylor & Francis Journals, vol. 21(1), pages 528-530, March.
    4. Selten, Reinhard & Stoecker, Rolf, 1986. "End behavior in sequences of finite Prisoner's Dilemma supergames A learning theory approach," Journal of Economic Behavior & Organization, Elsevier, vol. 7(1), pages 47-70, March.
    5. Lundberg, Shelly & Pollak, Robert A, 1993. "Separate Spheres Bargaining and the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 988-1010, December.
    6. Fehr, Ernst & Gachter, Simon, 1998. "Reciprocity and economics: The economic implications of Homo Reciprocans1," European Economic Review, Elsevier, vol. 42(3-5), pages 845-859, May.
    7. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard, 1986. "Fairness as a Constraint on Profit Seeking: Entitlements in the Market," American Economic Review, American Economic Association, vol. 76(4), pages 728-741, September.
    8. Frank, Robert H, 1987. "If Homo Economicus Could Choose His Own Utility Function, Would He Want One with a Conscience?," American Economic Review, American Economic Association, vol. 77(4), pages 593-604, September.
    9. Reinhard Selten & Michael Mitzkewitz & Gerald R. Uhlich, 1997. "Duopoly Strategies Programmed by Experienced Players," Econometrica, Econometric Society, vol. 65(3), pages 517-556, May.
    10. Merrill M. Flood, 1958. "Some Experimental Games," Management Science, INFORMS, vol. 5(1), pages 5-26, October.
    11. Sen, Amartya, 1985. "Goals, Commitment, and Identity," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 1(2), pages 341-355, Fall.
    12. Isaac, R. Mark & Walker, James M. & Williams, Arlington W., 1994. "Group size and the voluntary provision of public goods : Experimental evidence utilizing large groups," Journal of Public Economics, Elsevier, vol. 54(1), pages 1-36, May.
    13. Pranab K. Bardhan, 2000. "Understanding Underdevelopment: Challenges for Institutional Economics from the Point of View of Poor Countries," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 156(1), pages 216-216, March.
    14. Elster, Jon, 1996. "Rationality and the Emotions," Economic Journal, Royal Economic Society, vol. 106(438), pages 1386-1397, September.
    15. Frans B. M. de Waal & Michelle L. Berger, 2000. "Payment for labour in monkeys," Nature, Nature, vol. 404(6778), pages 563-563, April.
    16. Jon Elster, 1998. "Emotions and Economic Theory," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 47-74, March.
    17. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
    18. Colin F. Camerer & Richard H. Thaler, 1995. "Anomalies: Ultimatums, Dictators and Manners," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 209-219, Spring.
    19. Sugden, Robert, 1984. "Reciprocity: The Supply of Public Goods through Voluntary Contributions," Economic Journal, Royal Economic Society, vol. 94(376), pages 772-787, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bastiaensen, Johan & De Herdt, Tom & Vaessen, Jos, 2002. "Poverty, institutions and interventions: a framework for an institutional analysis of poverty and local anti-poverty interventions," IOB Discussion Papers 2002.06, Universiteit Antwerpen, Institute of Development Policy (IOB).
    2. Hiroki Ozono & Yoshio Kamijo & Kazumi Shimizu, 2016. "Institutionalize Reciprocity to Overcome the Public Goods Provision Problem," PLOS ONE, Public Library of Science, vol. 11(6), pages 1-11, June.
    3. Dasgupta Utteeyo, 2011. "Are Entry Threats Always Credible?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-41, December.
    4. Tim Johnson & Christopher T. Dawes & James H. Fowler & Oleg Smirnov, 2020. "Slowing COVID-19 transmission as a social dilemma: Lessons for government officials from interdisciplinary research on cooperation," Journal of Behavioral Public Administration, Center for Experimental and Behavioral Public Administration, vol. 3(1).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Grossmann, Volker, 2002. "Is it rational to internalize the personal norm that one should reciprocate?," Journal of Economic Psychology, Elsevier, vol. 23(1), pages 27-48, February.
    2. Ronald Bosman & Frans A.A.M. van Winden, 1999. "The Behavioral Impact of Emotions in a Power to take Game: An Experimental Study," Tinbergen Institute Discussion Papers 99-039/1, Tinbergen Institute.
    3. Ronald Bosman & Frans van Winden, 2002. "Emotional Hazard in a Power-to-take Experiment," Economic Journal, Royal Economic Society, vol. 112(476), pages 147-169, January.
    4. Ernst Fehr & Klaus M. Schmidt, "undated". "Theories of Fairness and Reciprocity - Evidence and Economic Applications," IEW - Working Papers 075, Institute for Empirical Research in Economics - University of Zurich.
    5. Bogliacino, Francesco & Grimalda, Gianluca & Pipke, David, 2021. "Kind or contented? An investigation of the gift exchange hypothesis in a natural field experiment in Colombia," OSF Preprints xmjaq, Center for Open Science.
    6. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
    7. Tobias Hahn & Noël Albert, 2017. "Strong Reciprocity in Consumer Boycotts," Journal of Business Ethics, Springer, vol. 145(3), pages 509-524, October.
    8. Russell Golman, 2016. "Good manners: signaling social preferences," Theory and Decision, Springer, vol. 81(1), pages 73-88, June.
    9. Lanse Minkler & Thomas Miceli, 2004. "Lying, Integrity, and Cooperation," Review of Social Economy, Taylor & Francis Journals, vol. 62(1), pages 27-50.
    10. Oliver Hart & John Moore, 2008. "Contracts as Reference Points," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(1), pages 1-48.
    11. Fehr, Ernst & Schmidt, Klaus M., 2005. "The Economics of Fairness, Reciprocity and Altruism – Experimental Evidence and New Theories," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 66, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    12. Markus Pasche, 2013. "What Can be Learned from Behavioural Economics for Environmental Policy?," Jena Economics Research Papers 2013-020, Friedrich-Schiller-University Jena.
    13. Xiao, Erte & Houser, Daniel, 2009. "Avoiding the sharp tongue: Anticipated written messages promote fair economic exchange," Journal of Economic Psychology, Elsevier, vol. 30(3), pages 393-404, June.
    14. Khalil, Elias, 2004. "Integrity, Shame and Self-Rationalization," Vassar College Department of Economics Working Paper Series 55, Vassar College Department of Economics.
    15. Houser, Daniel & Xiao, Erte & McCabe, Kevin & Smith, Vernon, 2008. "When punishment fails: Research on sanctions, intentions and non-cooperation," Games and Economic Behavior, Elsevier, vol. 62(2), pages 509-532, March.
    16. Jeannette Brosig & Joachim Weimann & Axel Ockenfels, 2003. "The Effect of Communication Media on Cooperation," German Economic Review, Verein für Socialpolitik, vol. 4(2), pages 217-241, May.
    17. Gary Bolton, 1998. "Bargaining and Dilemma Games: From Laboratory Data Towards Theoretical Synthesis," Experimental Economics, Springer;Economic Science Association, vol. 1(3), pages 257-281, December.
    18. Antonides, Gerrit & Kroft, Maaike, 2005. "Fairness judgments in household decision making," Journal of Economic Psychology, Elsevier, vol. 26(6), pages 902-913, December.
    19. Ubeda, Paloma, 2014. "The consistency of fairness rules: An experimental study," Journal of Economic Psychology, Elsevier, vol. 41(C), pages 88-100.
    20. Nyborg, Karine, 2011. "I don't want to hear about it: Rational ignorance among duty-oriented consumers," Journal of Economic Behavior & Organization, Elsevier, vol. 79(3), pages 263-274, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rsocec:v:61:y:2003:i:2:p:183-210. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RRSE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.