IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/168050.html
   My bibliography  Save this article

Payoff information hampers the evolution of cooperation

Author

Listed:
  • Huck, Steffen
  • Leutgeb, Johannes
  • Oprea, Ryan

Abstract

Human cooperation has been explained through rationality as well as heuristics-based models. Both model classes share the feature that knowledge of payoff functions is weakly beneficial for the emergence of cooperation. Here, we present experimental evidence to the contrary. We let human subjects interact in a competitive environment and find that, in the long run, access to information about own payoffs leads to less cooperative behaviour. In the short run subjects use naive learning heuristics that get replaced by better adapted heuristics in the long run. With more payoff information subjects are less likely to switch to pro-cooperative heuristics. The results call for the development of two-tier models for the evolution of cooperation.

Suggested Citation

  • Huck, Steffen & Leutgeb, Johannes & Oprea, Ryan, 2017. "Payoff information hampers the evolution of cooperation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 8, pages 1-1.
  • Handle: RePEc:zbw:espost:168050
    DOI: 10.1038/ncomms15147
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/168050/1/f-20609-full-text-Huck-et_al-ncomms15147-v3.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.1038/ncomms15147?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Apesteguia, Jose & Huck, Steffen & Oechssler, Jorg, 2007. "Imitation--theory and experimental evidence," Journal of Economic Theory, Elsevier, vol. 136(1), pages 217-235, September.
    2. Falk, Armin & Fischbacher, Urs, 2006. "A theory of reciprocity," Games and Economic Behavior, Elsevier, vol. 54(2), pages 293-315, February.
    3. 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.
    4. Ben Greiner, 2015. "Subject pool recruitment procedures: organizing experiments with ORSEE," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 1(1), pages 114-125, July.
    5. James Pettit & Daniel Friedman & Curtis Kephart & Ryan Oprea, 2014. "Software for continuous game experiments," Experimental Economics, Springer;Economic Science Association, vol. 17(4), pages 631-648, December.
    6. Boylan Richard T. & El-Gamal Mahmoud A., 1993. "Fictitious Play: A Statistical Study of Multiple Economic Experiments," Games and Economic Behavior, Elsevier, vol. 5(2), pages 205-222, April.
    7. Dufwenberg, Martin & Kirchsteiger, Georg, 2004. "A theory of sequential reciprocity," Games and Economic Behavior, Elsevier, vol. 47(2), pages 268-298, May.
    8. Friedman, Daniel & Huck, Steffen & Oprea, Ryan & Weidenholzer, Simon, 2015. "From imitation to collusion: Long-run learning in a low-information environment," Journal of Economic Theory, Elsevier, vol. 155(C), pages 185-205.
    9. 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.
    10. Fernando Vega-Redondo, 1997. "The Evolution of Walrasian Behavior," Econometrica, Econometric Society, vol. 65(2), pages 375-384, March.
    11. Ernst Fehr & Simon Gächter, 2002. "Altruistic punishment in humans," Nature, Nature, vol. 415(6868), pages 137-140, January.
    12. Martin A. Nowak & Karl Sigmund, 1998. "Evolution of indirect reciprocity by image scoring," Nature, Nature, vol. 393(6685), pages 573-577, June.
    13. Cheung, Yin-Wong & Friedman, Daniel, 1997. "Individual Learning in Normal Form Games: Some Laboratory Results," Games and Economic Behavior, Elsevier, vol. 19(1), pages 46-76, April.
    14. Pedro Dal Bo & Guillaume R. Frochette, 2011. "The Evolution of Cooperation in Infinitely Repeated Games: Experimental Evidence," American Economic Review, American Economic Association, vol. 101(1), pages 411-429, February.
    15. M.A. Nowak & K. Sigmund, 1998. "Evolution of Indirect Reciprocity by Image Scoring/ The Dynamics of Indirect Reciprocity," Working Papers ir98040, International Institute for Applied Systems Analysis.
    16. Huck, Steffen & Oechssler, Jorg, 1999. "The Indirect Evolutionary Approach to Explaining Fair Allocations," Games and Economic Behavior, Elsevier, vol. 28(1), pages 13-24, July.
    17. Huck, Steffen & Normann, Hans-Theo & Oechssler, Jorg, 1999. "Learning in Cournot Oligopoly--An Experiment," Economic Journal, Royal Economic Society, vol. 109(454), pages 80-95, March.
    18. Theo Offerman & Jan Potters & Joep Sonnemans, 2002. "Imitation and Belief Learning in an Oligopoly Experiment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(4), pages 973-997.
    19. Oechssler, Jorg, 2002. "Cooperation as a result of learning with aspiration levels," Journal of Economic Behavior & Organization, Elsevier, vol. 49(3), pages 405-409, November.
    20. Steffen Huck & Hans-Theo Normann & Joerg Oechssler, 2004. "Through Trial and Error to Collusion," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(1), pages 205-224, February.
    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. Collins, Sean M. & James, Duncan & Servátka, Maroš & Vadovič, Radovan, 2021. "Attainment of equilibrium via Marshallian path adjustment: Queueing and buyer determinism," Games and Economic Behavior, Elsevier, vol. 125(C), pages 94-106.
    2. Dimitri Dubois & Stefano Farolfi & Phu Nguyen-Van & Juliette Rouchier, 2018. "Information sharing is not always the right option when it comes to CPR extraction management: experimental findings," Working Papers of BETA 2018-24, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Backhaus, Teresa & Huck, Steffen & Leutgeb, Johannes & Oprea, Ryan, 2023. "Learning through period and physical time," Games and Economic Behavior, Elsevier, vol. 141(C), pages 21-29.
    4. Collins, Sean M. & James, Duncan & Servátka, Maroš & Vadovič, Radovan, 2020. "Attainment of Equilibrium: Marshallian Path Adjustment and Buyer Determinism," MPRA Paper 104103, University Library of Munich, Germany.
    5. Jiang, Zhi-Qiang & Wang, Peng & Ma, Jun-Chao & Zhu, Peican & Han, Zhen & Podobnik, Boris & Stanley, H. Eugene & Zhou, Wei-Xing & Alfaro-Bittner, Karin & Boccaletti, Stefano, 2023. "Unraveling the effects of network, direct and indirect reciprocity in online societies," Chaos, Solitons & Fractals, Elsevier, vol. 169(C).
    6. Guan, Junbiao & Wang, Kaihua, 2020. "Cooperative evolution in pedestrian room evacuation considering different individual behaviors," Applied Mathematics and Computation, Elsevier, vol. 369(C).

    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. Backhaus, Teresa & Huck, Steffen & Leutgeb, Johannes & Oprea, Ryan, 2023. "Learning through period and physical time," Games and Economic Behavior, Elsevier, vol. 141(C), pages 21-29.
    2. Bigoni, Maria & Fort, Margherita, 2013. "Information and learning in oligopoly: An experiment," Games and Economic Behavior, Elsevier, vol. 81(C), pages 192-214.
    3. Armstrong, Mark & Huck, Steffen, 2010. "Behavioral economics as applied to firms: a primer," MPRA Paper 20356, University Library of Munich, Germany.
    4. Jörg Oechssler & Alex Roomets & Stefan Roth, 2016. "From imitation to collusion: a replication," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 2(1), pages 13-21, May.
    5. Alós-Ferrer, Carlos & Ritschel, Alexander, 2021. "Multiple behavioral rules in Cournot oligopolies," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 250-267.
    6. Nikiforakis, Nikos, 2010. "Feedback, punishment and cooperation in public good experiments," Games and Economic Behavior, Elsevier, vol. 68(2), pages 689-702, March.
    7. Carlos Alós-Ferrer & Johannes Buckenmaier & Georg Kirchsteiger, 2022. "Do traders learn to select efficient market institutions?," Experimental Economics, Springer;Economic Science Association, vol. 25(1), pages 203-228, February.
    8. Friedman, Daniel & Huck, Steffen & Oprea, Ryan & Weidenholzer, Simon, 2015. "From imitation to collusion: Long-run learning in a low-information environment," Journal of Economic Theory, Elsevier, vol. 155(C), pages 185-205.
    9. Stanca, Luca, 2009. "Measuring indirect reciprocity: Whose back do we scratch?," Journal of Economic Psychology, Elsevier, vol. 30(2), pages 190-202, April.
    10. Jan Potters & Sigrid Suetens, 2013. "Oligopoly Experiments In The Current Millennium," Journal of Economic Surveys, Wiley Blackwell, vol. 27(3), pages 439-460, July.
    11. Sethi, Rajiv & Somanathan, E., 2003. "Understanding reciprocity," Journal of Economic Behavior & Organization, Elsevier, vol. 50(1), pages 1-27, January.
    12. Robert S. Gazzale, 2009. "Learning to Play Nash from the Best," Department of Economics Working Papers 2009-03, Department of Economics, Williams College.
    13. Ben-Ner, Avner & Putterman, Louis & Kong, Fanmin & Magan, Dan, 2004. "Reciprocity in a two-part dictator game," Journal of Economic Behavior & Organization, Elsevier, vol. 53(3), pages 333-352, March.
    14. Bogliacino, Francesco & Codagnone, Cristiano, 2021. "Microfoundations, behaviour, and evolution: Evidence from experiments," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 372-385.
    15. Engelmann, Dirk & Fischbacher, Urs, 2009. "Indirect reciprocity and strategic reputation building in an experimental helping game," Games and Economic Behavior, Elsevier, vol. 67(2), pages 399-407, November.
    16. Selten, Reinhard & Apesteguia, Jose, 2005. "Experimentally observed imitation and cooperation in price competition on the circle," Games and Economic Behavior, Elsevier, vol. 51(1), pages 171-192, April.
    17. Zhao, Shuchen, 2021. "Taking turns in continuous time," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 257-279.
    18. Song, Fei & Zhong, Chen-Bo, 2015. "You scratch his back, he scratches mine and I’ll scratch yours: Deception in simultaneous cyclic networks," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 98-111.
    19. Friedman, Daniel & Singh, Nirvikar, 2009. "Equilibrium vengeance," Games and Economic Behavior, Elsevier, vol. 66(2), pages 813-829, July.
    20. Moghadam, Hamed Markazi, 2021. "A nonparametric approach to evolutionary oligopoly games: An application to the crude oil industry," Economic Modelling, Elsevier, vol. 101(C).

    More about this item

    Keywords

    Economics; Experimental evolution;

    Statistics

    Access and download statistics

    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:zbw:espost:168050. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    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.