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The Enemy of My Enemy

Author

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  • Stringhi, Alessandro
  • Gil-Gallen, Sara
  • Albertazzi, Andrea

Abstract

This paper studies how competition between groups affects cooperation. In the control condition, pairs of subjects play an indefinitely repeated Prisoner’s Dilemma game without external competition. In the treatment, two pairs compete against each other. No monetary rewards are tied to winning, isolating the bare impact of competition. In the treatment, cooperation increases by 16 percentage points. Strategies estimation shows a shift from selfish strategies (Always Defect) to cooperative ones (Grim Trigger). A theoretical model provides a rationale for the experimental results.

Suggested Citation

  • Stringhi, Alessandro & Gil-Gallen, Sara & Albertazzi, Andrea, 2025. "The Enemy of My Enemy," FEEM Working Papers 349168, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemwp:349168
    DOI: 10.22004/ag.econ.349168
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    References listed on IDEAS

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    Institutional and Behavioral Economics;

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